News:
Markets opened higher after the PPI inflation reading and ahead of the latest FOMC minutes drop.
- Producer’s Prices rose +2.2% year-over-year
- Only marginally higher than the Fed’s target of 2.0%
- And well within the pre-pandemic, pre-inflation zone
But those initial gains didn’t hold.
At 2 PM, just before the FOMC minutes were released, markets turned negative on the day.
The bottom hit when the minutes dropped. Here are the highlights:
- Forecasts are getting stronger
- “The Committee [is] prepared to adjust … policy as appropriate”
- However, committee members agreed to “proceed carefully”
The market cheered the release, and buyers pushed prices higher into the closing bell.
The indexes settled mostly green and near their session highs.
- Dow Jones +0.2%
- Nasdaq +0.7%
- S&P 500 +0.4%
- Russell 2000 -0.2%
Sector Round Up
8 of the 11 sectors were green at the close.
At the top…
- Real Estate (XLRE) +2.0%
- Utilities (XLU) +1.6%
- Technology (XLK) +0.9%
The losers…
- Healthcare (XLV) -0.4%
- Consumer Staples (XLP) -0.7%
- Energy (XLE) -1.3%
Technicals:
The S&P 500 is holding nicely above local and long-term support…
With the bottom formed last week, this chart looks extremely bullish.
Any dip between the marked lines signals us to extend our seasonal swings to full size.
Your latest readout…
- The VIX is testing 16 today
- RSI levels are all neutral
- The put-to-call ratio is oversold
Timing:
This morning at 8:30, the latest headline inflation numbers will drop.
Tomorrow, earnings season unofficially kicks off.
Watchlist:
*Low Float
^Open Position
*PEV support at $1.40
*ALXO resistance at $10
^*GLBS support at $2
LFMD support at $6, resistance at $6.50
PGTI support at $30
WW support at $12
Secondary watchlist—float 100+ million
LAAC support at $7
^TAL support at $9, resistance at $10