The Market is Not Dead Yet

May 24, 2023

Mish's Daily

By Mish Schneider


Paying attention to the media and all the fearmongering around the debt ceiling, we can see the results to both the futures and stock markets.

I want to take a rare U-turn from technical signals (after this week focusing on the Economic Modern Family) and detail options to resolve (temporarily) this current crisis.

To review the technical macro, the S&P 500 failed to clear the 23-month or 2-year business cycle high at 420.

The small caps or Granddad Russell 2000 (IWM) has not even come close to the 23-month Ma and is now at threat of breaking the 6–8-year business cycle lows or the 80-month MA. Even more so for Granny Retail (XRT).

However, nothing has broken down yet.

The market is both fearful and optimistic-perhaps a different way of explaining stagflation?

I learned today that there are other options to temporarily resolve the political quagmire unless-and it seems like a ginormous unless-the White House agrees to a 2-year spending freeze.

  1. Short-term extension of the deadline-kicking the can.
  2. Senate vote or House discharge petition-Treasury then gets money to pay quarterly taxes-which funds them through the summer-kicking the can.
  3. The Concord Coalition (nonpartisan) takes money from Social Security-kicks the can.
  4. Treasury issues CONSOL bonds-no pay back date but high interest rate-more dangerous kicking can.
  5. 14th Amendment-validity of debt unconstitutional-kicking a can filled with legal ramifications.
  6. Mint a $1 trillion dollar coin-kicking a gimmicky can.

(Notes taken from Heather Long WaPo)

How are investors feeling?


Today’s current environment has created a consensus of protecting and preserving capital, yet at the same time, having some money at risk for when trends emerge.

There is always a bull market somewhere, right?

And I think many will agree that the economy should not contract very much more.

But that is a whole different story than the economy can expand-which could take years.

Just look at the monthly charts of SPY IWM and XRT and their 2-year versus 6-8-year business cycles.

We are stuck in between.


For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.


Get your copy of
Plant Your Money Tree: A Guide to Growing Your Wealth

Grow Your Wealth Today and Plant Your Money Tree!


"I grew my money tree and so can you!"- Mish Schneider

Mish in the Media -
All clips here

CMC Markets Futures Daytrading 05-24-23

Business First AM 05-24-23

TD Ameritrade 05-22-23

Daily Briefing Real Vision 05-19-23

Business First Am GME 05-10-23

Coming Up:

May 25 Mario Nawfal Twitter Space

May 25 Wolf Financial Twitter Spaces

May 31st Singapore Radio with Kai Ting 6:05 PM ET MoneyFM 89.3

June 2nd Yahoo Finance


* * * * * * * * ** * * * * * * * ** * * * * * ** * * * * * * * ** * * * * * ** * * * * * * * ** * * * * * ** * * * * * * * ** * * * * *

ETF Summary

S&P 500 (SPY) 23-month MA 420 Support 410 held

Russell 2000 (IWM) 170 support - 180 resistance

Dow (DIA) Right down to its 200-DMAand a confirmed caution phase

Nasdaq (QQQ) Worst case-a potential reversal top on weekly chart-best case-gets thru the weekly highs

Regional banks (KRE) Did the initial damage now sidelining

Semiconductors (SMH) 23-month MA at 124 with just a few days left-still wonder woman

Transportation (IYT) Like to see this hold 220 this week

Biotechnology (IBB) 121-135 range

Retail (XRT) 56.00 the 80-month MA while momentum is at least flatlining

Improve Your Returns With 'Mish's Daily'

Michele'Mish' Schneider

Every day you'll be prepared to trade with:

  • Unique insight into the health and future trends in markets
  • Key trading levels for major ETFs
  • The 'Modern Family' advantage
  • Actionable trading ideas in stocks and ETFs across all asset classes
Subscribe Now!