Week of 12/05-12/09 Stocks Fall as Fed Meeting Approaches

As major averages finish red for the week, we continue to see the trend of single-day upside movement followed by multiple days of losses in the market. The SPY has not been able to hold the 400 point level even after its last bull run towards 408dlls.

The recent focus on lower interest rate hikes was quickly overturned by this months job report, wages report, and the consumer price index report which all indicate that our economy is still experiencing high levels of inflation. This brings up the question in everyone's mind, "Is the central bank going to be able to create a soft landing or are we going to end up in a recession?". Strategist from J.P. Morgan and Bank of America have stated that they don't expect inflation to be tamed soon and in fact they are expecting a bear market to continue throughout the next two years. The tech sector has been leading the market bull runs this year and recently we only see news regarding production bottlenecks or social media drama. So what to do now? Look out for next week's Fed announcement and for major index key levels for resistance. One thing is for certain, we have a volatile week heading our way but nonetheless keep a positive mindset and remember that where there is volatility there is opportunity.