Lots of reasons to suspect 4Q of 2022 might turn out like 1962 Array ( [cookie] => 704342-17d6de-ebc608-c5e687-567dcb [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 208344 [user_id] => [reason] => [method] => ) 1 and can accesss
Friday’s about-face seemed impressive after just a minor pullback late week. Yet a few negatives remain present that will need to be resolved before projecting higher into December. First, negative divergence remains between the NASDAQ and $SPX (See NASDAQ below) as prices remain under early October highs. Second, DeMark indicators are now showing confluence of 60, 120 min and Daily TD Sell Setups which argue for a stall out. Third, Treasury yields look to have found initial support on pullbacks and haven’t yet confirmed a major breakdown. Fourth, short-term Elliott patterns still look to be nearing a conclusion after this runup. Finally, the NY FANG index broke to new lows for the year vs $SPX this week. However, in the bigger scheme of things, I’m impressed with the degree of resilience in this market and cycles show a good likelihood that 2022 could resemble 1962, which rallied up sharply in Q4. Overall, I suspect that early next week should be important for a pullback if we’re going to get it. Bottom line, dips should be buyable and I expect that the trajectory for the next two months should be positive, despite an above-average likelihood of a short-term pullback.
 
                 
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            Thomas J. Lee
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