News:
Thursday was a down day on Wall Street. All four major indexes slipped modestly lower.
- Dow Jones -1.1%
- Nasdaq -0.7%
- S&P 500 -1.0%
- Russell 2000 -0.6%
The uptrend has not broken. The market has now moved sideways for a second day.
Sector Round-Up
1 of the 11 sectors was green at the close…
- Energy (XLE) +1.8%
- The reduction in crude oil supply is the driving force here.
At the bottom…
- Real Estate (XLRE) -3.3%
- Utilities (XLU) -3.3%
These two sectors have been at or near the bottom all week.
Technicals:
The market can move in one of three directions. The choices are up, down, or sideways.
What we have here is a three-day rest period … sideways movement.
- It’s very common in bullish rallies.
- After gains of 5%+, a pause in the action is healthy.
- The market is looking for price acceptance.
During these rest periods, each day’s range stays within the previous day’s range.
- Look at the S&P 500, that’s exactly what it’s doing.
- A closer look reveals an ascending wedge pattern
- These result in breakouts more often than not.
Our other signals aren’t don’t provide any additional clues…
- The VIX is holding steady near 30, which favors the bears.
- RSI levels are neutral
- The Put-to-Call Ratio is neutral also
Timing:
The jobs report with the new unemployment rate will drop at 8:30 this morning.
- Right now, the strongest aspect of the economy is the labor market.
- If that changes, we’ll reexamine our outlook.
Today we remain bullish and will continue to build our seasonal positions.
Watchlist:
*Low Float
^Open Position
*BEAT support at $5
*SOBR resistance at $3.25
*^RELL support at $18
FNGR on watch
HROW resistance at $13, support at $10
^SAVA support at $40
ETNB resistance at $7.50
IMVT on watch
EVTL support at $10
ALZN support at $1.40
DCPH support at $17
RVNC support at $29
XFOR on watch
VIST support at $10.50
FREY support at $14, resistance at $16.50
ADEA on watch
HLIT on watch
ARDX support at $1.40
CANO resistance at $9
SBS support at $11