On Friday, markets opened in the red and sank through the trading session. Major indexes were off by about 1%, with one hour of trading left in the year.
Then in the final hour, stocks reversed.
All 4 indexes closed in the red but near flat and at the day’s highs…
- Dow Jones -0.2%
- Nasdaq -0.1%
- S&P 500 -0.3%
- Russell 2000 -0.3%
Sector Round Up
2 of 11 sectors ended Friday in the green.
- Energy (XLE) +0.6%
- Communications (XLC) +0.0%
No sector declined more than 1%. At the bottom…
- Utilities (XLU) -1.0%
- Real Estate (XLRE) -0.9%
- Materials (XLB) -0.7%
The S&P 500 remain in consolidation.
Markets can move in one of three directions, up, down, or sideways. This morning we’re watching to see how the sideways trend breaks…
The longer the consolidation, the bigger the move you can expect when a breakout or breakdown occurs.
This morning futures are sharply higher.
But our signals are mixed…
- The VIX closed below 22.5 but is pointing to a higher open
- RSI levels are all neutral
- The Put-to-Call Ratio remains oversold
Our outlook has been bullish, and without a clear reason to change, we are reiterating our bullish stance.
Today is the first trading day of 2023.
5 of 7 days of the “Santa Rally” are in the books. At Friday’s close, the S&P 500 is up 0.5%.
- The average return for the Santa rally is +1.3%
- It runs through tomorrow
An Early Warning System
If the S&P 500 ends the first five trading days of the year with gains 83% of the time, the market posts a positive year.
Last year the S&P 500 ended the first five days down 1.9% … It ended the year down 19%.
When the first five days end red, about 50% of the time, the year ends in the red.
We’ll be tracking this signal along with the Santa Rally.
*KALA on watch
*EVER support at $13.50
*NINE support at $14
PDSB on watch
CABA support at $7, resistance at $10
FREQ on watch
SMMT support at $4
TERN support at $9
ORMP resistance at $12
ORIC support at $5, resistance at $6
ETNB support at $12
RNA support at $22
GLYC support at $2.50
^CROX support at $104
^PRQR support at $3
VKTX support at $8.60
WVE support at $6.50
AQMS on watch
ALLK support at $8
CPRX support at $18
TGTX support at $10
ARDX support at $2.50
WDH support at $3
IQ support at $5