Tackle Today: Bears Strike, Stocks Sink
December 7, 2022
«SPY is now testing critical support.»
Traders,
Stocks have now sunk for four straight days. By itself, this stat isn’t all that unique. Four-day rallies and selloffs happen all the time. It’s the fact that it came immediately following such an epic Powell-inspired rally that is the head-scratcher.
Why were bulls so jazzed up on November 30th if they were going to abandon ship immediately? Shame. As a result of the quick rug pull, SPY is now beneath the 20-day moving average and flashing short-term caution. As an aside, the fact that its failure came at the declining 200-day moving average solidifies the significance of the long-term indicator.
The red-hot nature of the SPY’s uptrend has cooled. Now the question is whether this is the beginning of a more significant trend reversal or simply a downshift in the upward trajectory. I’m hoping for the latter, but I am prepared for the former, just in case.
We are sitting at potential support near $390-$393, so if buyers want the daily trend to maintain any semblance of bullishness, they need to play defense pronto.
Video Of The Day: Gino’s Gems – Best Moving Averages for Swing Trading
In today’s Gino’s Gems, Coach Gino talks about the best Moving Averages set up for Swing Trading.
Chart of the Day: S&P 500 ($SPY)
We’re short-term oversold at potential support. Bulls – now is your time to shine.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show Replay
If you missed last night’s episode where Coach Tyler Craig discussed Bear Ideas or would like to watch it again, check it out here.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.
Hard 14 System MasterMind Group 8:30 PM EST
Owners of our premium system Hard 14 are invited to attend. System architect, Mark Justice, will be showing how to apply the principles taught in the course and more.
Trade Masters 7:00 PM EST
Every Wednesday at 7 PM EST join us on the Trade Masters where two Coaches go head-to-head to see who can find the best trading setup.
Trading Justice 505: Powell’s Bull Trap
In this episode, Mark and Matt discuss the “Perfect Bull Trap.” It was quite the setup for bulls heading into the week.
Listen to this episode in the player below.
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