 Hey there X traders and we are going to do a small market recap given the volatility in the turmoil That's been going on in the market recently. So This is an end of the year for 2022 So it seems Santa won't deliver a rally this year the much expected yearly December rally seems that skipped over 2022 Technically speaking as you can clearly see the S&P 500 as represented by spy here is on a clear downtrend For the year not only that but it seems to be on the next leg down of this megaphone downtrend that it's been on So if you look at it from the technical perspective, it's looking quite gloomy and If we add the Mac D in here As you can see on the weekly time frame even the Mac D is curling downwards on the weekly time frame and If we throw on the RSI actually is not so bad It's near 40. That's 45 So it's it's a ways away from the the usual 30, which is the over The oversold and the 60 which is the overbought So this is not really telling us much right now And but luckily we still have this 200 SMA right here. This blue line. You can see it served as support quite solidly here on this drop and it will very likely serve as support whenever this comes down and touches as You know this 366 365 level, which seems to be a pretty solid long-trend support as well so technically speaking It's clearly on a downtrend. We do have that SMA left at a at this confluence point right here with that long-trend support, but otherwise it's on this big leg down and That is what has a lot of people worried now on the fundamental side though This is where we run into problems now There seems to be very little fundamentally speaking that might prop up the market true earnings were not so disappointing But you have to remember that these correct these were corrected estimates Okay, which were cut down from their original levels. So basically they met lowered expectations Not only that, but there are many other macroeconomic issues plaguing the near-term future The looming recession is as real as it gets and some analysts are now even calling for that recession to be longer than usual And then you have the dollar, you know, which as you all know has gotten quite strong during this 2022 Which is also a big headwind for equities in general, okay This is what it has done as you could see. It's Quite strong. So that's a big headwind For a lot of the earnings coming up as well a strong dollar is a great thing if you're like a tourist trying to buy things You know when you travel to Europe or Asia, but a strong dollar for companies Is not so good, you know Basically it makes their the US company exports more expensive in those foreign countries and That means that US exports will suffer even more than they have already been suffering as can be seen by the growing negative trade balance But that's not the only problem with the strong dollar as the dollar gets stronger and interest rates keep going up Then foreign countries look to the dollar as a safe haven asset, which means the demand for the dollar goes Up even more driving prices even higher and if interest rates in the US are higher Or even at the same level as in other countries, you know, but the dollar is stronger And it is obviously seen as a better asset to hold as far as foreign currencies are concerned This means that the dollar will go up even higher as countries invest in US denominated assets And if the Fed keeps its promise, you know about holding those interest rates even at 4% or 5% but for longer as Powell has hinted Then basically this means that the dollar will remain stronger and therefore more expensive for a lot longer than just 2023 which is probably why a lot of economists are calling that this recession is going to last a lot more than one year and Then you have China, you know on the other hand the world basically coming out of a pandemic whether they want to or not because otherwise the demand destruction in to their economy will basically be unfathomable and Basically as China continues to recover and grow This growth will drive the price of commodities higher. The reason is if you think about it China is One of the biggest if not the largest consumer of commodities in the world Why because it is the factory of the world, you know Everybody produces or not everybody but most companies most countries produce a lot of their stuff in China and Think about what it means. I mean basically they consume The largest portion of all raw materials such as precious metals iron ore finished steel grains and other food stuffs as well as oil petroleum and As they awake from this, you know awakened from the slumber that they've been in they will demand even ever larger quantities of these Commodities driving prices even higher. So this means that inflation is very very likely to creep back in To our economies. So basically we have a technically bearish market structure and very bearish market fundamentals in the near and medium term so sprinkle on top of that the fact that bricks as a Union is consolidating and gaining, you know more countries gaining strength every year as more countries join bricks And you have the makings for a very dire situation for the US economy going forward Now whether this all plays out or not Well, that's irrelevant. The problem is that investors are not rational and every time technicals break down just a little bit You know and fundamentals because on the worldwide economy are affected by things like geopolitics Well, basically this instills fear into the investors driving the market into a possibly self-fulfilling bearish prophecy so Basically it looks like there is still a lot more bearish market to be had and We need to learn to trade appropriately we need to learn to To trade to the downside because there's a lot of money to be made to the downside. So You know you better look into that educational education channel for more video lessons and posts because There is a lot we can do to trade in a bearish market and still be profitable So stick with us and don't forget to subscribe to our YouTube channel to keep it to stay basically, you know notified and We'll see you in the next one. So we're gonna have a great weekend