Midday Update: 2023-01-17
Goldman earnings miss puts pressure on Dow and starting to drag SPX lower after a morning high
After an initial pop up in Nasdaq and S&P 500 on ECB news, both fell back as the Dow has been under pressure from the Goldman earnings. I don’t think SPX needs higher at this point but important to have some confirmation of a break like a drop under 3994 and 3985. So far, SPX rejected the 75% retrace of the December high to December low. Bears really have something to work with if the market drops back under the 62% retrace at 3975.
I’m watching Euro pretty closely for signs of a reversal. After an initial tiny poke above the highs from last week, Euro promptly fell to test initial support that bears need to take out at 1.0817. Next hurdle after that for bears to clear is 1.0769.
I’m just going to anticipate the question, “Can you give us a natural gas update?” and give you this chart. Nat gas is up from the low against 3.43 support last week but nothing decisive yet. There is a projected cycle low in this window of time, but that window probably stretches out into middle of next week, and thus can’t guarantee there will not be a new minor low first.