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Market Pulse | Market Trends | Markets
Stocks Make a Lower High as Fed Stays Hawkish: Market Trends This Week
David Russell
September 21, 2023

Downloads are available here. TradeStation’s ideas on TradingView are available here.

Register for Market Trends here.

Sizing Up the S&P 500

  • S&P 500 breaks support at 4444 after Fed meeting
  • Two consecutive inside weeks break to the downside
  • 50-day MA turns negative
  • MACD turns bearish
  • Downtrend potentially begins with another low on weekly chart
  • August low of 4335 potentially in play
  • Intermarket:
    • 10-year Treasury yield inching above October high
    • EURUSD breaks potential bearish flag
    • VIX back above 15
S&P 500, daily chart, with key patterns and indicators.

Sector Watch

  • Safe havens like utilities, consumer staples, health care outperforming slightly: potential risk off
  • Semiconductors leading to downside in past week
  • Energy starting to lag amid shooting-star in crude oil futures (@CL)

Signals Scan

  • Palantir (PLTR) potential bearish flag after stalling under 50-day MA
  • Microsoft (MSFT) may have downside continuation under 50-day MA
  • UnitedHealth (UNH), Danaher (DHR): “Golden crosses” in health care

Key News

  • Fed reduces planned rate cuts next year
  • Ed Morse of Citi: Oil may peak amid refiner maintenance, coming supply from Iran, Iraq, Nigeria, Mexico
  • Housing starts, builder sentiment weakens amid high rates.
  • Savita Subramanian of BofA raises S&P 500 target to 4600
  • Societe Generale: High rates hurting small companies more than largest companies (based on interest expense hitting income statements).

Upcoming Events

  • Tuesday (9/26): Consumer confidence
  • Wednesday (9/27): Durable goods, crude oil inventories
  • Early October (date N/A): Tesla (TSLA) deliveries

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About the author

David Russell
David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

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