After two hopeful days at the beginning of the week, weakness continued, and we moved down to the December 2022 high. Price on Friday appeared to find support at this level. Thursday and Friday saw volume over the 21-day average. 21 is used because it is the average number of trading days in a month. Even with this pullback that began in late July, the SP500 is still up for the year.
Despite it being a challenging week for the SP500, the utility sector was able to squeak out a gain. Energy led the index down.
Earnings are not lifting stock prices. Breadth remains extremely weak. Implying that so far, investors do not like what they are hearing.
Major economic data released this week includes US Real GDP Quarter-over-Quarter, which shows increasing positive growth.
The big event for next week is the Fed meeting on November 1. No one can know what the Fed’s decision will be beforehand, but we do know that it if they decide to raise rates, it will sit poorly with the market.
Next week, I am watching the December ‘22 high and the Fed’s decision to see if I will remain out of the equity market or start looking for entries again.
I hope everyone has a good weekend!
Real Money Trading Journal