Jerome speaks, the market peaks
Mid-week Market Update
Markets were mostly on hold today until 1:30 PM waiting for Jerome Powell to make or break things. His comments were a bit less hawkish than the last go around and it was off to the races.
That sounds like a really big deal. And it certainly was for the short-time frame traders. But what are the bigger picture implications?
To the charts —
DIA — There was plenty of concern here recently with many calling the move of the last few days a failed breakout. Today’s action should calm some nerves after the Dow 30 ETF closed substantially back above the August pivot high.
SPY — S&P 500 stocks moved nicely higher and are now facing the long-anticipated test of the cut right through the declining 200-day moving average and almost tested the downtrend line.
QQQ — After setting precariously on $280 support, and threatening a move lower yesterday, the NASDAQ 100 is up the most on the day +4.59%, breaking resoundingly higher from its consolidation pattern and testing the recent 11/15 high.
IWM — The Small Caps were also able to get back over the declining 200-day MA and are immediately faced with the next test; the downtrend line dating back to the all-time high.
The US Dollar DXY and the volatility index behaved as expected; moving lower as stock prices rose.
Needless to say, these follow-through moves are significantly bullish improvements.
After almost three weeks of anxiety, anticipation, and consolidation today’s action looks like wants to open the door to higher prices. The situation continues to ‘feel’ more incrementally bullish.
Keep an eye on the progression and overhead resistance. And watch closely those stocks that lead us out of the range.
I’ll have monthly charts of some on Twitter this evening and tomorrow morning.
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
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POSITION DISCLOSURE
November 30, 2022 4:15 PM
Long: COIN1118P45, PYPL1216C90, SI1216P25
Short: SI1216P20
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike