S&P 500 Futures Daily Insights for Fri 23 Dec 2022
Balance Rules apply going into key inflation data
GDR Model Insights for the Current Week
GDR Model Performance (2022): +13.73%
S&P 500 Total Return (2022): -18.50%
Market Tone: Potential Transition to Bearish (previous week: Bullish)
Positioning: 0.00% Flat (previous day: 0.00% Flat)
Near-Term Outlook: Balance Rules Apply
Yesterday the market reacted strongly to employment and GDP data as it sold off strongly and in an emotional fashion, leaving behind relatively Poor Structure. Importantly, yesterday left behind an Excess High and an Excess Low. The ES also rejected a break below the current Balance Zone and is now trading around its middle.
With key inflation and home sales data coming out today, Balance Rules apply, specifically, 1) go with a break from Balance, and 2) fade a failed break from Balance.
Potential Market-Moving Events Tomorrow
08:30am - PCE, Durable Goods Orders
10:00am - New Home Sales, Michigan Consumer Sentiment