SPXUSD daily guidance is neutral with a bullish bias. Recommended ratio: 52% SPX, 48% Cash.
*US New Residential Construction saw Building Permits for November down 11.2% from October to 1,342,000 and November Housing Starts down 0.5% from October to 1,427,000. These numbers are reflective of an economy preparing for weakening demand as we head into 2023. US November Consumer Confidence spiked from 101.4 in November to 108.3 in December following two consecutive months of decline. This number is likely reflective of a lower CPI in November paired with expectations of continued lower inflation in 2023. Nike beat on both top and bottom 2023 Q2 estimates with its second best quarter of revenue growth in the past 10+ years, this is likely due to Black Friday sales and holiday shopping but is also reflective of a still strong US consumer. It was confirmed today by US Secretary of State Antony Blinken that the first transfer of the Patriot Air Defense System will be included in the most recent $1.85b aid package that the US will provide to Ukraine. Ukraine President Zelenskyy has also landed in the USA to meet with President Biden and deliver a speech to a joint session in Congress later tonight. Russia has previously declared that any Patriot Missiles supplied to Ukraine would immediately become legitimate targets of their armed forces attack.
US Equities, US Equity Futures, Energy, Agriculture, DXY, HSI and N100 are up. Cryptos are mixed. Metals, GBPUSD, EURUSD, JPYUSD, CNYUSD, NI225, VIX and US Treasurys are down.
Key Upcoming Dates: US Final Q3 GDP Estimate at 830am EST 12/22; US November PCE Index at 830am EST 12/23; UofM Consumer Sentiment Index at 10am EST 12/23.*
Price is currently testing the 50MA at $3875 as resistance. Volume is currently Low (high) and on track to favor buyers for a second consecutive session. Parabolic SAR flips bullish at $4045, this margin is neutral at the moment. RSI is currently testing the uptrend line from January 2022 at 46.5 as resistance. Stochastic crossed over bullish in today's session after retesting max bottom and is currently trending up at 11, the next resistance is at 17. MACD remains bearish and is currently testing -11.45 support. ADX is currently trending down at 13.6 as Price is attempting to defend support at the 50MA, this is mildly bearish at the moment.
If Price is to reclaim support of the 50MA it will have to close above $3875 as well as recapture support at $3913 minor support. However, if Price is rejected here at the 50MA, it will likely aim to retest the lower trendline of the descending channel from July 2021 at ~$3710 as support. Mental Stop Loss: (one close below) $3810.
*US New Residential Construction saw Building Permits for November down 11.2% from October to 1,342,000 and November Housing Starts down 0.5% from October to 1,427,000. These numbers are reflective of an economy preparing for weakening demand as we head into 2023. US November Consumer Confidence spiked from 101.4 in November to 108.3 in December following two consecutive months of decline. This number is likely reflective of a lower CPI in November paired with expectations of continued lower inflation in 2023. Nike beat on both top and bottom 2023 Q2 estimates with its second best quarter of revenue growth in the past 10+ years, this is likely due to Black Friday sales and holiday shopping but is also reflective of a still strong US consumer. It was confirmed today by US Secretary of State Antony Blinken that the first transfer of the Patriot Air Defense System will be included in the most recent $1.85b aid package that the US will provide to Ukraine. Ukraine President Zelenskyy has also landed in the USA to meet with President Biden and deliver a speech to a joint session in Congress later tonight. Russia has previously declared that any Patriot Missiles supplied to Ukraine would immediately become legitimate targets of their armed forces attack.
US Equities, US Equity Futures, Energy, Agriculture, DXY, HSI and N100 are up. Cryptos are mixed. Metals, GBPUSD, EURUSD, JPYUSD, CNYUSD, NI225, VIX and US Treasurys are down.
Key Upcoming Dates: US Final Q3 GDP Estimate at 830am EST 12/22; US November PCE Index at 830am EST 12/23; UofM Consumer Sentiment Index at 10am EST 12/23.*
Price is currently testing the 50MA at $3875 as resistance. Volume is currently Low (high) and on track to favor buyers for a second consecutive session. Parabolic SAR flips bullish at $4045, this margin is neutral at the moment. RSI is currently testing the uptrend line from January 2022 at 46.5 as resistance. Stochastic crossed over bullish in today's session after retesting max bottom and is currently trending up at 11, the next resistance is at 17. MACD remains bearish and is currently testing -11.45 support. ADX is currently trending down at 13.6 as Price is attempting to defend support at the 50MA, this is mildly bearish at the moment.
If Price is to reclaim support of the 50MA it will have to close above $3875 as well as recapture support at $3913 minor support. However, if Price is rejected here at the 50MA, it will likely aim to retest the lower trendline of the descending channel from July 2021 at ~$3710 as support. Mental Stop Loss: (one close below) $3810.