Markets opened Tuesday near flat but in the red. After a slight attempt to turn green, sellers overwhelmed the market, and stocks tumbled.
The indexes settle deep in the red…
- Dow Jones -1.3%
- Nasdaq -1.9%
- S&P 500 -1.4%
- Russell 2000 -1.7%
This time, chaos in Washington stole the show.
Speaker McCarthy was ousted from his post. The 118th Congress became the first in American history to remove a speaker.
With the House and Republicans leaderless … A November shutdown suddenly seems likely.
Sector Round Up
10 of the 11 sectors closed the day red.
The lone winner…
- Utilities (XLU) +1.2%
At the bottom…
- Technology (XLK) -1.7%
- Real Estate (XLRE) -1.8%
- Consumer Discretionary (XLY) -2.4%
The indexes are back to oversold conditions.
The S&P 500 is also at a key support level…
Everything we see suggests this is the bottom. Or the bottom is very close.
Your latest readout…
- The VIX is holding below 20
- RSI levels are mostly oversold, the Nasdaq is neutral
- The put-to-call ratio remains oversold
As we quoted yesterday, “October is a great time to buy.”
We are adding to our seasonal swing positions this morning.
And we opened up a new position from the watchlist…
Secondary watchlist—float 100+ million
TAL support at $8