Broad Market Outlook
The market did fail to break the stage 4 break down it has been in last week as it tried for the 6th major attempt to break said downtrend. Even though the major area failed, higher lows continued as the overall range in the market continues to coil up as if its bound for an explosive move in either direction.
Scanning the major markets and sectors most, virtually all look quite promising for a different market in 2023 then we saw in 2022. 2022 was pegged with nothing but lower highs, lower lows, and overall pain as the major leaders turned into major losers all year long.
2023 so far has been shapping up to be quite literally the opposite of last year, also starting the new year near 52 week lows helps the overall performace as the year progresses if we trade higher.
As most people continue to zero in on this major inflection point and most still following the negitive narrative that we "need" to go lower. We should plan for that choppy/knee jerk type reactions around that area but continuing to position ourselves for a move higher.
If the market does not want to give us that move higher and everything I said above is dead wrong, then we know the current pivot low will be the fire alarm for us to take notice of the break lower which for now is 385 and 375 in the S&P 500.
There are plenty of bases breaking out and high and tight earnings flags that are setting up for there next leg, continue to scan your watchlist, call out ideas and focus on the positives that we are seeing in the market.
Macro Rotation Outlook