Thursday was another down day for the markets.
We heard from two Fed Presidents on the fight against inflation…
- St. Louis: Interest rates may need to go to 5-7% (The current rate is about 4%)
- Kansas City: An economic contraction may be needed
As much as the bulls tried … the markets flirted with positive territory in the early afternoon … they couldn’t push past the Fed’s comments.
All 4 indexes closed the day modestly lower…
- Dow Jones -0.0%
- Nasdaq -0.3%
- S&P 500 -0.3%
- Russell 2000 -1.8%
Sector Round Up
Most, 9 of 11, sectors ended the day lower. The winners…
- Energy (XLE) +0.2%
- Technology (XLK) +0.1%
At the bottom…
- Utilities (XLU) -1.8%
- Consumer Discretionary (XLY) -1.2%
- Materials (XLB) -1.0%
Two staples of malls across the country had breakout days on Wall Street.
Macy’s (M) popped +15% on strong earnings.
- The retailer cleared out old inventory
- Says it’s prepared for the holiday rush
- The buying added more than $1 billion in market cap
Bath & Body Works (BBWI) led the S&P 500 and soared +25%.
- It beat Wall Street’s expectations for earnings
- Raised its guidance for the year
- Buyers added more than $2 billion in market cap
There are multiple levels of support in play for the SPY right now…
The purple mark is our buy zone. We’ll watch for bottoming action intraday and proper risk-reward for a short-term options trade.
The SPY chart is currently our strongest signal…
- The VIX actually moved lower yesterday
- RSI levels are all neutral
- The Put-to-Call Ratio is neutral … bears covered a lot of positions yesterday
Option expiration is today, which could help drive volatility and aid with a big swing in index prices.
Monday will kick off more earnings and a shortened trading week.
Your Thanksgiving week outlook will be out before the market opens on Monday. Have a great weekend!
*NINE support at $10
*CRTD resistance at $1.50
PDSB on watch
CABA on watch
FDMT on watch
IMMR support at $7
NRXP support at $1
^IMVT support at $13
WNC resistance at $25, support at $24
GLYC on watch
MGNX support at $6.50
^CROX support at $80/85, resistance at $100
^RYAM support at $7
PRQR on watch
PRVB support at $8
OII support at $15
IGT support at $24
MGNI support at $10, resistance at $12
ADMA support at $2.85
^ARDX support at $1.60
VVNT support at $9
MNSO support at $9
TME resistance at $6
GILD support at $80, resistance at $84