Dailyplay Update – December 23, 2022

A very rough day for bulls yesterday, though the late rebound into the close brought the SPX back above 3814, keeping that as the important short-term support level. First level resistance has moved lower to 3917/3932. (Both areas are highlighted on the chart below.)

SPX – Daily

Without a new closing low for December tomorrow, the downward Setup count will flip to a +1, removing the bearish momentum we’ve seen since the peak two Tuesdays ago on the CPI spike higher that marked the top.

Today is a weekly option expiration and the last potentially meaningful economic reports of the year, as well as the last day most PMs will be in the office this year.

Yesterday saw a down close in GE, and yesterday I said that if the stock was down on the day going into the close, we’d take off 1 of the remaining 3 credit call spreads we had on. (It closing mid-price was 67 cents, so you should have been filled right about there.) For now, we’ll keep the final two of these that we put on at a $1.96 credit.

This is my last communication with you through Tuesday, Jan. 3, when I’ll return to do our next weekly technical outlook webinar. I wish all of you, our loyal readers, a very happy holiday season and good health and prosperity for the new year.  – Rick