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Markets are attempting to regain their footing as we head into a shortened trading week. Friday’s Core PCE report that showed the slowest pace of inflation since May and the US government shutdown being averted created some positive sentiment over the weekend but markets are generally lackluster to start the week with the average stock as measured by equal-weighted S&P 500 measures lagging which has been the case for several weeks now.

There was a clear message coming out of Matt’s analysis in the Newsletter and Trading Justice podcast this weekend. We know what we are looking for, we just need the patience to let it develop. That has been stellar advice for weeks now in the beat-up areas of the market and pattern development is key here. The Trading Justice podcast was a fun one this week with a look at the Tackle 25 and you can watch that podcast here.

Be sure to attend the Trader’s Lounge and watch the Tackle Today each day for updated pattern analysis as that will be key for decisions over the holiday season.

Stocks in the News

• No Stocks in the news today.

Economic Reports

A series of misses on economic reports this morning with both durable goods and consumer confidence missing while new home sales came in line with expectations.

• Durable Goods: -1.1% versus -0.3% expectations
• CB Consumer Confidence: 104.7 versus 112.9 expectations
• New Home Sales: 664k versus 666k expectations

Economic news is likely to have minimum impact over the next two holiday weeks until we get into labor market week and the monthly unemployment report on January 10^th.

Next 24 Hours

The stock market will close early tomorrow on Christmas Eve at 1:00 PM EST in a shortened trading session and remain closed on Christmas. There are no major economic reports or earnings reports between now and Christmas.

Have a fantastic start to your holiday week!

S&P 500 (SPY)

Could Santa bring a lot of chop to the markets this holiday season? Many charts have down sloping moving averages they must navigate in the short-term which can act as resistance as the 9-ema did on the S&P 500 on Friday. Navigating these moving resistance levels will be key to pattern development in the coming weeks.

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