So we all thought yes the recovery is here. Great news with G20 and the new agreements to be enacted with Mexico and Canada and positive news about a tarrif halt for 90 days. That shot the SPY ETf up to that 281 resistance area premartket on Monday Dec 3rd. Yet there was no continuation to the upside to break out. We did break the brown monthly trend line to the upside and through the 200 day SMA. Yet there is more and more press of a recession coming, which leads me to believe this is going to end up in selling from investors on the bounce instead of influx of new money. It we break the 200 (light blue) and 50(dark blue) SMAs then we will likely have the death cross of the averages indicating more of a downturn to come. We shall see if my post of a 236 are in January is correct.
I’m curious to see where this week ends because that 200 SMA is right near by at 275.99 and to me a close above will indicate the buyers want to see the market recover. A close below this week and the sellers are taking losses for maybe tax purposes and will buy back cheaper, but it might be a while before a strong uptrend. Will see where the market takes us.
For now I use Trade Ideas to find those Alpha stocks Like $AZO where on Earnings it broke out from the premarket highs and then ran up a nice $24 to a pullback and support for a secondary run before the market drop pulled it down. A close above 870 would lead me to believe that this will have a couple days to the upside if the market doesn’t drag it down.
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