This week it seemed like traders and investors were trying to figure out if bad economic news was good news (ie Fed stops raising rates and maybe even reversing course) or if bad economic news is leading us into a recession. Both outcomes are possible so the question is “where does the market go from here”.
ADP and ISM data were on the weak side and the jobs numbers everyone was concerned about coming out Friday when the markets were closed came in pretty close to expectations. SPY and QQQ have pushed up into an area of what could be resistance. The VIX volatility index is back at a very low level indicating no big fear of a market sell-off. A short term break higher is possible.
Next week starts another earnings season with companies such as JPM, C and WFC kicking things off Friday. The financials will be closely watched given the turmoil that has occurred in this sector and remains a concern. If we get a lot of poor guidance from companies in the coming weeks it is likely we will see stock prices drop. As it is now, market internals are not great with the indexes being held up by a number of large cap companies.
What to Watch for this Week:
Sectors in Play Last Week:
Earnings this week:
Brian (Randy) Pezim is a Canadian trader and investor, with a focus on swing trading equities as well as day trading.