A Week in Review: Indecision Reigns

As we close out the third week of 2023 we are largely in the same position in which we started.

From a technical standpoint we did exactly what is expected at this point, reject off the upper trendline.

Markets almost entirely traded between the two trendlines, with the only exception being a small period of time on both Tuesday and Wednesday, which would eventually become our fifth distinct rejection.

On a more positive note though, markets showed strength towards the end of the week, with tech leading the way with a boost from optimistic earnings from Netflix. This helped defend the lower trendline and set the stage for a massive move next week, as we will discuss in our weekly preview Sunday night.

As for other events of note for this week, we had numerous Fed speakers barking around as well as a flurry of large cap earnings. Economic data was mild at best and strong volatility in all asset classes continued. By far the most intriguing news flows for the week were the rolling layoffs in the tech sector, headlined by Microsoft cutting 10,000 workers, further showing companies taking action to lower costs amidst an economic slowdown.

But above all, idecision reigned. No clear direction was given this week and the stakes have been raised for next week's plethora of earnings and economic data.

Let's take a closer look at what happened this week and start preparing for next week...