December is Here and New Month for the Market

This December monthly chart looks very intresting, I am not trying to make predictions of what can happen but there will be a battle at from 458.32 to the all-time highs at 460. We can see that battle now with intraday moves with SPY hitting the highs and falling back to support at 453.50.

Bull Case:
Marketing nearing all-time highs after a pullback
Breadth is very bullish
Resistance is weaken when being hit multiple times
Rate increases have stopped
Inflation is under “wraps”
Economy is ok
Earnings were good in Q3

Bear Case:
Marketing nearing resistance
Breadth is nearing its max output
SPY failed at this level 3 x times
Economy is slowing down – Leading indicators are weak
Consumer is less confident and spending down
Unemployment starting to tick up
Q4 earnings on deck – Could be bearis

At this point it is a toss up. We will just be watching the 458-460 level because above that it gets bullish, and watching 450 for a bearish level. I would expect lots of chop for the next few weeks as the battle rages here.

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