Back for another round of Momentum Monday, proudly brought to you by the reporting season, your home for heartbreak and irrational trading.
Stay tuned for our next webinar for Members which will be a wrap of the reporting season. Where we will talk about the stocks that shone and those that deteriorated. By this I mean based on company factors, not just price. After all, that is what the Momentum Monday report is for .
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The agenda for today’s report:
Broader market sentiment
Stocks of Interest
52 week high screen
Broader marker sentiment.
S&P500
The S&P 500 was down 2.7%, marking its worst week since Dec. 9 and third down week in a row.
Most of that performance captured on Friday when the core personal consumption expenditures price index, (apparently the Fed’s preferred measurement of inflation), rose 0.6% in January and 4.7% from the prior year, higher than economists’ expectations.
While I struggle to see what unique insight this latest number delivers beyond what we already knew, it stands to reason that the Fed may have to keep rates higher for longer to quell inflationary pressures.
However on the weekly chart, we see the impact is still not great enough to get us back into the downward channel (thankfully) and if we can reverse (or best case scenario) and stay above 3837 before continuing our climb from here, that will be a positive.
I would still prefer the price stay out of the 2022 downward channel which means the index must stay above 3818. The last chance saloon will be at 3582. A breach below that level and it is difficult to suggest that we will avoid more downward pressure.
The larger fall in the S&P500 comes after two stoic weeks where in the face of broader macro concerns, the market held its own.
Unfortunately though it has now just tipped the weekly RSI below 50 (meaning the…
