News:
On Friday, markets digested the latest PCE inflation numbers.
There were no major surprises in the report.
Prices rose in line with previous months and expectations…
- +0.3% month-over-month
- +3.4% year-over-year
The indexes closed mixed but favored the bears…
- Dow Jones -1.2%
- Nasdaq +0.4%
- S&P 500 -0.5%
- Russell 2000 -1.2%
The Nasdaq was propped up by Amazon (AMZN), which surged 7% after upbeat earnings.
Sector Round Up
Of the 11 sectors, only 2 ended Friday with gains.
The winners…
- Consumer Discretionary (XLY) +1.1%
- Technology (XLK) +0.6%
At the bottom…
- Financials (XLF) -1.8%
- Utilities (XLU) -1.9%
- Energy (CLE) -2.4%
Technicals:
The S&P 500 finished Friday at the bottom of a long-term support zone and extremely oversold.
History tells us that these extremes can’t be maintained.
Markets are bouncing sharply in premarket trading. We expect the seasonal bottom to be in this week if it wasn’t already reached on Friday.
Your latest readout…
- The VIX held steady below 22 but above 20
- RSI levels are mostly oversold, the Nadaq is neutral
- The put-to-call ratio is oversold
Timing:
Another busy week of earnings to end October and welcome November…
- Pinterest (PINS) Monday after-hours
- AMD (AMD) Tuesday after-hours
- PayPal (PYPL) Wednesday after-hours
- Palantir (PLTR^) Thursday per-market
- Apple (AAPL) Thursday after-hours
- Carvana (CVNA) Thursday after-hours
The latest interest rate from Washington is due out this week also. The FOMC convenes on Tuesday and closes with a decision on Wednesday.
Watchlist:
^Open Position
DECK support at $560
ATGE on watch
METC support at $11
SRRK support at $10
EPAC support at $28, resistance at $29
LOGI on watch