Factory index data send stocks down

Wall Street is down after the factory index data

U.S. stocks dropped slightly on Thursday because investors looked at the negative data coming from the Philadelphia Fed factory activity index which keeps falling down for 6 months in a row.

This particular index measures the business activity of manufacturers.

It is important to mention that inverted yield curves in the U.S. are a sign of economic stress and historically are a reliable sign of economic recession.


S&P 500 Technical Analysis – Daily Chart

The S&P 500 price is still trading inside an ascending channel.

The support at 3900 has been held in yesterday’s trading session and the index is up today, so far.

This is a bullish sign, therefore we can expect the index price to rise to the range between 4054 and 4100, respectively the 200-day MA (green moving average) and the trend line of the bear market.

If the price can break above 200-day MA, it would be a very bullish signal that will push prices even higher and the market could flip potentially to a bull market.

The RSI remains at 60, indicating a Bullish trend.


Market Sentiment – Fear & Greed Index


The market sentiment remains in the “Greed” mode, at 63, only one point higher than yesterday.


FedWatch Tool – FED rates probabilities


80.6% of investors are expecting the FED to increase the interest rates by 0.50% in the next meeting.

The remaining 19.4% are expecting a 0.75% rate increase.

Nothing has changed in the data from yesterday’s probabilities.

No other options are considered at this stage.

The next FED meeting is on 14 December 2022.


Portfolio Update

Overall, the majority of my positions are bullish (LONG). I have a few short positions opened recently that I am monitoring and waiting for the right time to close or I could add more shorts if the price reverts to the downside.

Right now I am neutral on the stock market, as the price can go in any direction in the short term.

I am keeping my risk score low and I have some cash available on balance to use for new trades.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here: https://federicamontella.com/go/etoro/

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.


Federica Montella

eToro Popular Investor


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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.