We’ll do a quick recap of this week’s price action ahead of the long weekend. There is a list of “problems” we’re seeing on the monthly, weekly, and daily charts of the overall market.
The SPX monthly chart has a squeeze, trading under the 21 exponential moving average (EMA), and the first negative histogram since 2008. The MACD bars changed colors from green to grey, showing the momentum from the COVID-19 rally is gone.
If the squeeze fires short and SPX breaks the weekly 50 simple moving average (SMA), we could see some more nasty selling across the board.
There will not be a Focused Trades newsletter sent on Sunday, December 25th or Monday, December 26th due to the Christmas Holiday observed.
Happy holidays and we hope you have a safe and merry time off!
Stay Focused!