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At The Previous High December 3, 2022

Posted by Tom in Thoughts.
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December 2, 2022 –  Despite all of the glowing reports on this market, we’re actually at the previous high of 11492 back on November 15 on the broad NASDAQ Composite Index.  (see chart below)

Thus we really have not had that big breakout that many have proclaimed.  Since we’re technically “over bought” I’d expect a pullback early in the week.  Any move after that would be a better indication of a new trend.  However, December 14 looms in the background.  That’s when the FED announces its next interest rate move.  Powell is alluding to a ½% increase but that’s still an increase.  The economy remains strong and consumers continue to buy with Christmas retail sales increasing.  This is NOT a sign of inflation slowing down, as much as we’d like to see it.

What’s moving in the short term?  The table below shows the Short Term Sector Strength

And so we watch and wait for the preverbal “Santa Clause Rally” . . . if it comes.  Beware of end of the year tax loss selling; that’s the Grinch.  Have a good week.      ……  Tom  ……

Price chart by MetaStock; & table by http://www.HighGrowthStock.com. Used with permission.

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