Awesome Stocks

[gfp927z]

Bigworld, The S+P 500 has fallen through the 50 MA, as of now, so will see how the market closes today. Next support on the chart is 3800 and then 3700. But most likely there will be a re-test of the 50 MA next week, which often happens around key support/resistance levels.

The S+P 500 has been in a downtrend all year, and if it comes down to 3700 and then has a decent bounce, that could start to look like a potential bottom formation (inverted head + shoulders). But it's still way early to gauge a 'bottom' since the severity and duration of the recession is still an unknown.

I figure the Fed wants stocks lower in order to reduce the 'wealth effect' aspect on inflation, but they don't want a steep decline or crash that would force a cut in rates and return to QE. But a gradual orderly drop in stocks they would welcome.

2023 could be a long trying year for investors. I figure having a long term perspective will help, along with a fairly modest stock exposure. But lots of landmines, including Ukraine, N. Korea, Taiwan, fallout from the FTX collapse, and a quadrillion other things that might blow up (Derivatives).




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