Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat
News
How should you play the NASDAQ 100’s moment of truth?
News
Baker Hughes shares decline amid weak Q4 print
Trends & Analysis
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat
News
How should you play the NASDAQ 100’s moment of truth?
News
Baker Hughes shares decline amid weak Q4 print

Account
New to ADSS? Open an
account now to get started.
Open an account Login

Asset Watch

Could Christmas come late for the S&P 500 bulls?

 

Tuesday, December 27, 2022

It’s been nothing but disappointment across Wall Street recently, as the S&P 500 has fallen by 5.8% in December. Moreover, with Q3 GDP revised upward and the FOMC reiterating its hawkish message, higher interest rates are more likely than not in 2023.
Yet, CFRA Research noted on Dec. 23 that “U.S. stocks have risen during the last five trading days of December and the first two days of January about 75% of the time… a pattern attributed to low liquidity, tax-loss harvesting and investing of year-end bonuses.”
As a result, if some holiday cheer is on the horizon, it could begin this week. But, before participating, you should wait until the S&P 500 tips its hand.

For example, the December sell-off has created immense technical damage, as the S&P 500 has lost its 20, 50 and 100-day moving averages. Likewise, the 50-day MA (the black line) is now resistance, as the index could only hold the key level for a short period on Dec. 21.

Therefore, for a Santa Clause rally to materialize, the index needs to hold above 3,886. Thereafter, next-level resistance is the 100-day MA (3,915) and then the 20-day MA (3,943). Furthermore, the left and middle areas of the chart show that the 100-day MA (the red line) marked the intraday bottoms on Nov. 17, and from Dec. 6 to Dec. 12, so it may cap the S&P 500’s potential upside.

Thus, are ~75% odds worthwhile, or should you proceed with caution?


Site by Pink Green
© ADSS 2023


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.