Sentiment: Bearish
Disclaimer: The timeframe of this analysis is meant to prepare you for 10-10-22 to 10-14-22. Longer or shorter timeframes can still be correct but bear in mind that this update is meant for weekly timelines.
Keeping it simple here with three main things to watch for the week:
- Producer Price Index is released 5:30am PST on 10/12/22. It should be lower at 8.4% YoY and will dictate the market direction. You can see the results here: https://us.econoday.com/byshoweventfull.aspx?fid=541459&cust=us&year=2022&lid=0&prev=/byweek.asp#top
- FOMC minutes come out at 11am PST on 10/12/22. Depending on what is released in the meeting notes, this has moved markets in the past.
- Consumer Price Index is released at 5:30am PST on 10/13/22. It should be lower at 8.1% YoY and will dictate the market direction. You can see the results here: https://us.econoday.com/byshoweventfull.aspx?fid=541685&cust=us&year=2022&lid=0&prev=/byweek.asp#top
Above is a negative weekly S&P 500 chart (updated 10/11/2022) . Basically showing the S&P 500 upside down. The reason I am showing this is because if it was right side up, I would call this a bullish chart that will go higher. However, this is upside down so on a technical level going past the 200 day moving average on a weekly basis looks likely right now unless things change in technicals, government numbers, fed raising rates and earnings tell us otherwise.