The stock market is putting on a pretty good show as we start the new year.
In the early weeks of 2023, stocks are breaking above some pretty strong resistance levels. Traders are feeling good, bad news is good news, and good news is great news The CNN Fear and Greed Index is tipping GREED, which tells us there is some positive momentum. Even our own indicators show some strength, and as long as the SPX holds above the 3,900 level, we believe that strength can continue.
And, until we see a decisive move above SPX 4,100, that’s how we’ll trade it. We think the 4,100 area is important resistance, and could eventually determine whether the bear market is finally over.
But for now folks, this is still a bear market, and the past few weeks have been a solid rally in that bear market. Enjoy it while it lasts.
The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.
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