Election workers counted ballots for a second night, and still, there’s no confirmed winner. A split congress is now the most likely outcome—Although it’s still too close to call.
The indexes declined yesterday on the failed “red wave.”
- Dow Jones -2.0%
- Nasdaq -2.5%
- S&P 500 -2.1%
- Russell 2000 -2.7%
The selling was broad. 80% of stocks fell while only 17% advanced.
Sector Round Up
All 11 sectors ended Wednesday lower.
Leading the decline…
- Energy (XLE) -4.9%
- Consumer Discretionary (XLY) -3.1%
- Technology (XLK) -2.6%
The smallest losers…
- Utilities (XLU) -0.7%
- Healthcare (XLV) -1.1%
- Consumer Staples (XLP) -1.1%
- Real Estate (XLRE) -1.1%
The crypto market crash continued for a second day.
- Bitcoin^ reached its lowest level in 2 years.
- It’s trading near $16,400 at writing.
Any hope in market stability vanished when Binance walked away from a previously announced deal to acquire FTX.
- Our projected bottom is between $4,830 and $22,700
- There’s an important lesson for crypto investors … “Not your keys, not your coins” — Learn more about ownership here.
- We use and endorse Ledger.
Meta Platforms (META) rose 5% after announcing it would cut 13% of its staff—That’s 11,000+ jobs.
Roblox (RBLX^) fell 21% on disappointing earnings.
Disney (DIS) lost 13% of its value after announcing earnings.
- Its streaming losses are mounting.
- The company’s lost more than $200 billion in market cap since March 2021.
Shares of Robinhood (HOOD) fell 13% due mainly because of its connections to crypto.
Tesla (TSLA^) fell 7% as CEO Elon Musk struggles to manage Twitter.
- The stock reached its lowest level in 2 years after Musk sold $4 billion in stock
- Musk has sold more than $19 billion worth of shares this year.
Back to rising support, can it hold?
Our bullish thesis rest on the marked rising support level. Typically markets rally after the mid-terms are settled, but the final count isn’t in.
We’re monitoring these signals closely, but the news cycle is having a greater impact than the technicals right now.
- The VIX is still climbing
- RSI levels are neutral
- The Put-to-Call Ratio is neutral
Today we’ll get the latest CPI inflation data at 8:30 AM.
The figure could impact the market more than the election.
Unrelated to the markets … Shout out to the U.S. Marine Corps celebrating 247 years of service today. If you know a Marine, it’s appropriate to wish them a “happy birthday.”
*KLXE support at $16
*NINE on watch
SLS support at $5
ARQQ support at $9
RETA support at $38
^IMVT support at $12
NRDS support at $13
WNC resistance at $22
ELF on watch
PCVX resistance at $45
MGNX support at $5.50
^CROX support at $80
RYAM support at $6
VIST resistance at $14, support at $12
OII support at $14
IGT support at $22
GILD support at $80