Bears Are Having A Field Day, Again

Increasing market concern about a recession next year and triple-witching on Friday caused the S&P 500 to close out the week at 3852.36, its lowest level since November 9. It’s down 5.6% so far in December from its recent high of 4080.11 on November 30, but is still up 7.7% from its October 12 low of 3577.03.

The index has made three major lower highs off its 200-day moving average and two major lower lows since January 3. It closed below its 50-day moving average on Friday (chart). The bears are expecting new lows in early 2023. We are expecting the October 12 low to hold if it is tested.