Stocks pushed higher Friday as the three major market benchmarks booked their best weekly percentage gains since November, after companies began reporting their fourth quarter earnings results, kicked off by several of the big banks. Bank of America, Citigroup, J.P. Morgan and Wells Fargo all ended higher even as some said they are expecting a mild recession. Investors initially had a subdued reaction to the numbers, focusing on a rise in expenses and provision losses, along with cautious outlooks. However, the bank stocks reversed course through the day and eventually finished higher. On the economic front, the University of Michigan consumer sentiment index climbed in January to its highest level in nine months, which followed December's consumer price index data released Thursday showing prices declined slightly, boosting hopes that the Federal Reserve may soon slow its pace of interest rate hikes.
Economic releases dominate the calendar for the holiday-shortened week ahead. The Empire State Manufacturing Index will be released on January 18 to be followed by the produce price index report and retail sales report on January 19. The retail sales number for December is expected to be influenced by a more pronounced pull-forward of holiday sales in 2022 and weakness in categories that are associated with holiday shopping like clothing, furniture, general merchandise, and department stores. The week also includes a heavy slate of speeches from Federal Reserve members as the critical January 31-February 1 meeting of the FOMC starts to get closer.
Chart: SPX daily
Chart: SPX 30 mins
From tech side of analysis, the market already extended from 8&21 EMAs, and close to sloping resistance with is also 4000ish big level. I think the market is kinda over optimistic about the FED, which may slow its pace of interest rate hikes and kinda let the fear of missing out (FOMO) take control. Therefore, I am expecting the market correct back to somewhere around 3900ish waiting for 8&21 EMAs to catch up and break up again. From the 30 mins chart, I think the market is likely to move sideway around 3700 to 4000ish.
Please feel free to express your ideas and thoughts in the comment section.
Economic releases dominate the calendar for the holiday-shortened week ahead. The Empire State Manufacturing Index will be released on January 18 to be followed by the produce price index report and retail sales report on January 19. The retail sales number for December is expected to be influenced by a more pronounced pull-forward of holiday sales in 2022 and weakness in categories that are associated with holiday shopping like clothing, furniture, general merchandise, and department stores. The week also includes a heavy slate of speeches from Federal Reserve members as the critical January 31-February 1 meeting of the FOMC starts to get closer.
From tech side of analysis, the market already extended from 8&21 EMAs, and close to sloping resistance with is also 4000ish big level. I think the market is kinda over optimistic about the FED, which may slow its pace of interest rate hikes and kinda let the fear of missing out (FOMO) take control. Therefore, I am expecting the market correct back to somewhere around 3900ish waiting for 8&21 EMAs to catch up and break up again. From the 30 mins chart, I think the market is likely to move sideway around 3700 to 4000ish.
Please feel free to express your ideas and thoughts in the comment section.