Futures are up moderately as we approach the open, gaining back much of the losses suffered yesterday in the wake of a dismal pending home sales print (-4.0% versus -0.8% expected, the worst since inception in 2001.) Prices fell MoM for the fourth month in a row.

At this point, it appears the bulls are ready to take a knee and let the clock run out on 2022. Unfortunately, 2023 should prove even more difficult.

continued for members…

One of the biggest challenges facing the bears is the Dow, which is long overdue for a backtest of its SMA200. If the bulls dig their heels in, it would occur as SPX and COMP are backtesting their 2020 pre-pandemic highs (3393 and 9838 respectively.) This might be the support TPTB will pull out all the stops to protect. Nothing new in currencies… …and more backtesting in CL and RB. Unless my charts are completely wrong, stocks are going to accelerate to the downside in January, producing a sharp drop in the 10Y as the SMA200 comes into view.