December 5, 2022
Good morning,
It’s hard to criticize a market that absorbs as negative a data surprise as last Friday’s November employment release. Recall the -1.5%+ gap decline in Futures Friday morning on the jobs data print. The market opened down at those levels, but around mid-day, it began steadily climbing into the afternoon to close just about unchanged on the S&P 500 Index for the day (down -.12%). Another impressive performance – the market remains in rally mode.
There is relatively little data on the macroeconomic calendar this week. Historically, tax loss harvesting for taxable investors is done in the first half of this month. Markets are now a bit more overbought than last week. All three of these factors may combine to give us a low volume, mildly down week, ahead of the biggest week of the month next week with CPI and the last Fed meeting of the year.
Be well,
Mike