Wednesday morning belonged to the bears. Markets opened lower and fell.
One hour into the trading session, the Nasdaq was down about 2.5%.
But that’s as far as the bears got…
Stocks clawed back the losses and closed the day mixed and near flat…
- Dow Jones +0.0%
- Nasdaq -0.2%
- S&P 500 -0.0%
- Russell 2000 +0.2%
Sector Round Up
The bulls ended the day with a slight advantage.
53% of stocks closed the day higher, while 42% declined.
8 of the 11 sectors closed the day green.
At the top…
- Financials (XLF) +0.8%
- Consumer Discretionary (XLY) +0.5%
At the bottom…
- Utilities (XLU) -1.4%
- Industrials (XLI) -0.6%
The remaining sectors finished within 0.5% of their previous close.
After the close yesterday, Tesla (TSLA^) reported earnings and revealed record profits of $12.6 for 2022. More than double 2021 profits.
- At writing, the stock price is up 7% in premarket trading
- Since bottoming in early January, the stock has gained 43%
- And added $150 billion in market cap during th rise
Last year’s price cuts for Telsa cars have led to a demand boom.
During the earnings call, CEO Elon Musk said in 2023, “we’ve seen the strongest orders year-to-date than ever in our history.”
The S&P 500 continues to struggle at resistance.
Good thing we warned you about this weeks ahead of time … 🙂
The short-term trend is pointing higher. The long-term trend is poised to be broken.
At writing, we believe a breakout is inevitable. We remain long SPXL.
Our other signals offer no alternative…
- The VIX continues to trend lower.
- The Put-to-Call Ratio is neutral
- RSI levels are all neutral
This morning at 8:30, the Bureau of Economic Analysis will release the preliminary estimate for Q4 GDP. We’ll be watching the market to gauge the reaction.
The January Barometer remains positive…
- At writing, the S&P 500 is up 4.5% since January 1.
*APXCsupport at $4
*BWEN support at $5, resistance at $6
BYSI support at $2.50, resistance at $3
SY on watch
VERA support at $8
^AEHR support at $30
SDRL resistance at $41
DPRO support at $1.40
FLNC support at $22.50
LX support at $3.25, resistance at $3.50
PTGX support at $12
ZYME support at $9, resistance at $10
^CROX support at $120
AQMS support at $1.20, resistance at $1.60
CBAY support at $7
TOUR resistance at $2.50
TIGO on watch
SUMO on watch
TGTX support at $14
ARDX support at $3
AMLI support at $3.30