Special Bulletin: Dec 16, 2022 (9:30am Update)

The Selling Grows to Adjust for a New Terminal Rate

As of this morning’s open (SPX @ 3,870.74) Our Current Market Outlook was downgraded to “Market in Correction” with a red light. Currently our “Core Four” (see top of page) has 2 yellow and 2 red lights.

The market has made a beeline to the 50-day moving averages. The Nasdaq failed to hold its yesterday and the S&P 500 will likely test its today.

Market participants are having to adjust their future models with the Fed’s newly released terminal Fed-funds rate expectation.

Expect either a trip under the 50-day mav’s for 2-5 days and then a “stand” by the institutions at a “higher low” price level that leads to a surprise rally into the new year or look out below! If the market does not make a bold stand asap then sharply lower price exploration may be inevitable.

This update is brief and was posted a tad late (lunchtime) as our team is involved in a family funeral this weekend. Thank you for your understanding.

Game plan: Watch to see if the S&P 500 tests its 50-day and rises back above it quickly, or if it slices lower and heads to a retest of the October low. Continue to employ defensive risk management tactics. Pay close attention as the market experiences this violent 3 day drop to the S&P 500’s 50-day mav. It may turn out to be a “violent-3” shakeout and buying opportunity… or it may not. If it does, our signals would be upgraded as the market improved.

Note: You can learn more about The Triumphant Core Four risk management system by clicking here.

Have a Triumphant day! ®