Market Notebook
Discussion –
PRICE ACTION:
Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND closed lower on the week.
TECHNICAL ANALYSIS:
SPY appears established in a downward trend.
BND closed below the 20-day exponential moving average, calling into question the well-established upward trend.
SENTIMENT:
Market participants appeared focused on near and medium-term corporate profitability as factors in the real economy are likely to affect profitability negatively. The proximity of the holidays and the end of 2022 are likely to slow market participation.
ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed. Real economic activity will likely slow over the next few months as the Federal Reserve continues to act to contain inflationary pressures.
NEXT WEEK:
It may be prudent to avoid equity purchases unless necessary while momentum remains negative.
All the best during the week ahead!
Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.