News:
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%
Notable Names
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
Technicals:
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
Timing:
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!
Watchlist:
*Low Float
^Open Position
*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