News:
On Monday, markets slid lower ahead of the FOMC meeting, which convenes today.
The selling was controlled but widespread.
Each of the major indexes finished near their lows of the day.
- Dow Jones -0.8%
- Nasdaq -2.0%
- S&P 500 -1.3%
- Russell 2000 -1.3%
After leading the charge for several days, the Nasdaq dragged the market lower.
The decline was likely driven, in part, by profit-taking after last week’s solid run-up.
Sector Round Up
10 of the 11 sectors ended the day lower.
The lone winner…
- Consumer Staples (XLP) +0.1%
At the bottom…
- Energy (XLE) -2.3%
- Technology (XLK) -1.9%
- Consumer Discretionary (XLY) -1.7%
Technicals:
When resistance is broken, it becomes support. The strongest trends will test that support level before moving higher.
The S&P 500 is testing its former resistance. We’re now waiting to see if indeed support holds.
No signal suggests we are heading lower…
- The VIX is still in a downtrend
- The Put-to-Call Ratio is neutral
- RSI levels are all back to neutral
Timing:
Heading into its final day of trading, the January Barometer remains positive…
- At writing, the S&P 500 is up 4.6% since January 1
- Barring a massive sell-off, January will end in the green
Your February Outlook
As a whole, February is one of the lower-performing months.
- It ranks 11 of 12 for S&P 500 returns.
- Pre-election years fare better. About two-thirds of the time, markets end the month higher.
- Worth noting …. Trading around President’s Day tends to favor the bears
The news-making days to mark on your calendar…
- Feb 1, FOMC meeting concludes, new interest rate announced
- Feb 3, January jobs report
- Feb 10, U Mich Consumer Sentiment survey
- Feb 14, CPI inflation data drops on Valentine’s day
- Feb 16, PPI inflation reading
- Feb 20, President’s Day—Markets closed
- Feb 22, FOMC minutes
- Feb 23, Revised Q4 GDP numbers
Watchlist:
*Low Float
^Open Position
*CUEN on watch
*APXC on watch
*BWEN support at $5, resistance at $6
SY support at $2.50
^AEHR support at $30
CABA resistance at $12
PTGX support at $12.50
TBBK support at $32
APLD support at $3
BZFD support at $2
CBAY support at $7
TOUR resistance at $2.50
SUMO support at $11
TGTX support at $14
AMLI support at $3.30
IQ resistance at $7
TUYA support at $2.75