News:
Markets opened green after the latest PPI numbers showed inflation cooling at its fastest rate since the pandemic began.
- Goods -1.6%
- Services +0.1%
- Total -0.5%
The report showed prices were lower than expectations, fueling the case that on inflation, the worst is behind us.
The market’s gains, however, were short-lived.
In the end, the major indexes settled sharply lower..
- Dow Jones -1.8%
- Nasdaq -1.2%
- S&P 500 -1.6%
- Russell 2000 -1.6%
Sector Round Up
Each of the 11 sectors ended the day in the red.
Falling the hardest…
- Consumer Staples (XLP) -2.7%
- Utilities (XLU) -2.4%
- Industrials (XLI) -1.9%
The smallest losers…
- Communications (XLC) -1.2%
- Technology (XLK) -1.3%
- Consumer Discretionary (XLY) -1.3%
Metal Report
Alcoa (AA) dropped nearly 3% by the close and another 6%+ after reporting disappointing earnings.
- The company reported bottom-line losses for Q4 & 2022
- Sales volume increased, but lower prices kept profits down
- The market cap lost yesterday totaled nearly $1 billion
The Wall Street Journal came out as bullish on metals and commodities yesterday. The AA earnings do not currently support their argument.
Technicals:
Markets tend to turn at resistance.
And the S&P 500’s long-term trend is still down…
And as you can see on the chart above, the market turned at the established falling resistance.
- The VIX remains in a downtrend (bullish)
- RSI levels are all neutral
- The Put-to-Call Ratio is very oversold
Based on the current readings, we expect this dip to be short-lived. But keep an eye on the marked resistance level. It’s the bear’s last stronghold.
Timing:
The market will have eye’s on the Philadelphia Fed’s Manufacturing Business Outlook Survey, which is due out at 8:30 this morning.
From the world of big tech, Netflix (NFLX^) reports earnings after the closing bell today.
Watchlist:
*Low Float
^Open Position
*NEON on watch
*NINE support at $14
*GP resistance at $4
*BWEN support at $5
CYAD on watch
VERA support at $8
AEHR support at $27.50, resistance at $30
ALGS on watch
DPRO support at $1.20
THRX on watch
LX support at $3
ZYME support at $10
^CROX on watch
AQMS on watch
IRDM support at $60
DADA resistance at $14
MNSO support at $13.50