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10/25/23 Turning Tides

News:

Markets moved higher on Tuesday after skirting oversold conditions on Monday.

SPY Daily Candles – Chart from thinkorswim

The indexes opened green and stayed in positive territory all day. Then closed with modest gains…

  • Dow Jones +0.6%
  • Nasdaq +0.9%
  • S&P 500 +0.7%
  • Russell 2000 +0.8%

The positive close broke 4-day and 5-day losing streaks for the Dow Jones and S&P 500, respectively.

Sector Round Up

10 of the 11 sectors closed with gains.

At the top…

  • Utilities (XLU) +2.6%
  • Real Estate (XLRE) +1.3%
  • Materials (XLB) +1.1%

The loser…

  • Energy (XLE) -1.4%

Notable Names

Earnings season is delivering a lot of winners so far.

Several household names posted solid gains after reporting earnings on Monday evening and Tuesday morning. Here are the highlights…

Images from Dell & Yahoo!
  • Logitech (LOGI) +13%
  • Verizon (VZ) +9%
  • General Electric (GE) +7%
  • 3M (MMM) +5%
  • Coca-Cola (KO) +3%

Technicals: 

We’re keeping close tabs on the market’s fear gauge this morning.

VIX Daily Candles – Chart from thinkorswim

The VIX is hovering just below 20 after closing above the critical level two times in a row.

You can also see an ascending channel that’s formed since the Isreal-Hamas conflict began.

A break below 18 could tip the scales back in favor of the bulls. Above 20 favors the bears.

Your latest readout…

Timing:

Earnings season continues today. 

We’ll be watching how the markets digest the latest releases and changing guidance.

Watchlist:

METC support at $11
EPAC support at $28
PGTI support at $30
MREO resistance at $1.80
LOGI on watch

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