Littlejohn Financial

Coin Flip

If you’re looking for sage advice about what comes next in the markets, move along. This thing is in a precarious spot.

On the one hand, economic activity seems to be (at least on paper) hangin’ in there. Employers still can’t seem to find employees. So inflation remains, despite the Fed’s attempt to quash it.

This creates quite a conundrum for the stock markets. On one hand, it appears earnings growth is still happening. On the other, rising rates are expected to ding the economy.

So which is it?

Even the markets don’t seem to know yet.

Last week was a rough one, with indexes dropping anywhere from 2-to-3 percent-ish points. Do we continue this week?

Short answer: maybe. 

A lot of sentiment seems to be getting washed out fast. The previous FOMO (fear of missing out) rally has quickly switched to how-much-worse-might-this-get thinking.

With a lot of the frenzied buying coming out of this market, it’s tough to say whether this looks like a buying opportunity, of if there is more downside.

Looking at areas of interest, the 200-dma for the SPX is sitting at roughly 3940. There were also a few other points of interest at 3900 and 3864. If support fails at these, it’s likely the markets are headed lower… perhaps significantly lower.

This week could be an interesting tell…

Here are the charts:

Posted: 02/27/2023


Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Littlejohn Financial), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Littlejohn Financial. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Littlejohn Financial is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Littlejohn Financial’s current written disclosure statement discussing our advisory services and fees is available for review upon request.
Scroll to Top