10/18/23 Small Caps Catching Up


Markets failed to pick a direction on Tuesday.

After a red open, buyers pushed the market into positive territory by lunchtime. However, after peaking around 12:30, markets faded into the close.

Image from ValueWalk

The indexes closed mixed, mostly near flat. With one notable exception…

  • Dow Jones +0.0%
  • Nasdaq -0.3% 
  • S&P 500 -0.0%
  • Russell 2000 +1.1% ←

A look under the surface reveals a slight advantage for the bulls. Of all listed stocks…

  • 56% advanced
  • 39% declined

The small-cap hosting Russell 2000 appears to be coming back to life after testing 52-week lows last week. 

We have active bets that the bottom is in.

Sector Round Up

Of the 11 sectors, 6 posted gains on Tuesday.

At the top…

  • Energy (XLE) +1.0%
  • Materials (XLB) +1.0%
  • Financials (XLF) +0.5%

At the bottom…

  • Utilities (XLU) -0.3%
  • Technology (XLK) -0.5%
  • Real Estate (XLRE) -0.5%


The S&P 500 looks strong here, but it’s not out of the woods yet.

SPY Daily Candles – Chart by thinkorswim

Currently, it’s holding above two critical support levels. But falling overhead resistance poses a threat. Or at least an obstacle.

Your latest readout…


There are three trading days left until options expiration.

Next week is the last full trading week of October. The last two months of the year have strong bullish tendencies.

Our seasonal swing positions are built. Now, we’re watching for individual stocks…


*Low Float
^Open Position

*PRZO resistance at $3
*PEVsupport at $1.40, resistance at $1.60
^*GLBS support at $2
LFMD support at $6.50, resistance at $7
METC support at $11
EPAC support at $28
PGTI support at $30
APLT resistance at $3
LULU support at $400
MREO resistance at $1.80

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