Looking at the SPY for the year and we see that the market continues to make lower lows and lower highs.
SPY stock took a big hit on Wednesday during JPOW’s speech, dropping from $405 to as low as $396.
The index closed at $399.40 but continues to be on a downward trend.
Zooming out to the full year and we see the SPY started off in January at $477 per share.
By the end of the first quarter, we see a high of $461 per share and a low of $417 per share.
In June, we see a low of $365 and a peak of $426 by the third quarter of 2022, in August.
This fourth quarter, SPY stock had a low of $348 in October, and a high of $414 in December.
Will The Stock Market Go Up Soon?
Based on the current trend we’re seeing from the S&P 500, it doesn’t seem like the market is ready for a bull run anytime soon.
Buyers failed to break the downward trend as seen in the figure above which means the probability of sellers coming in again is high.
Although JPOW said the U.S economy is currently not in a recession, both Bank of America and Wells Fargo CEOs expect a recession to hit the country during the first quarter of 2023 with some sort of light at the end of the tunnel by Q4.
“While retail payments surged 11% so far this year to nearly $4 trillion, that increase obscures a slowdown that began in recent weeks: November spending rose just 5%,” Bank of America’s CEO Brian Moynihan said.
Wells Fargo CEO Charlie Scharf said, “there is a slowdown happening, there is no question about it. We are expecting a fairly weak economy throughout the entire year (2023).”
If this happens to be the case, today’s bear market may drag out through the majority of the new year.
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Do you see this downtrend in the stock market continuing throughout 2023?
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