Stocks seem stuck. The S&P 500 SPX has been wobbling within a 200-point channel for about a month. Market frenemy Jay Powell on Wednesday made sure with his hawkish stance that it didn’t challenge the top of that range.
“In the short run, it’s tough to have much conviction on direction on a 2-3 day basis given that prices are right in the middle of a giant 200 point one-month range. It’s expected that any rally attempts up to 4100 should be sold, while declines under 3965 should bring about a retest and possible break of early December lows near 3918,” writes Newton in a note published late Wednesday.
He reckons the recent lows don’t look likely to hold given the greater volume on down days of late and this could see a breach of the 2022 trough of $19.40. Technical support sits at $16. Again, volume has been heavier on down days, and Newton feels that after its recent bounce has again faded the November lows near $85 may be broken, with support not available until possibly $61.
Newton says Tesla stock is still not oversold on a weekly or monthly basis and so the path of least resistance is lower for the time being. Data out of China showed the damage done by Beijing’s strict COVID policy. Retail sales fell 5.9% in November from a year earlier, the worst performance since May. Industrial output rose 2.2% over the same period, but that was below expectations for a 3.6% increase.
marketmanipulation
Elon is dumping Tesla. Does he know something we don't?
GFYS with this witch hunt
A liberal analyst?
Trading Tesla up or down could be one of the best trades in 2023