On Wednesday, markets climbed higher and reacted positively to the release of the November Fed FOMC minutes.
All 4 indexes ended the day higher…
- Dow Jones +0.3%
- Nasdaq +1.0%
- S&P 500 +0.6%
- Russell 2000 +0.2%
The minutes showed the decision to raise rates in November was unanimous.
Looking ahead … “a substantial majority of participants judged that a slowing in the pace of [rate] increase[s] would soon be appropriate,” the minutes said.
- More inflation data will be released ahead of the next FOMC meeting.
- It’s still too early to say what next month’s meeting will have in store.
Sector Round Up
10 of 11 sectors ended the day higher.
Leading the charge…
- Consumer Discretionary (XLY) +1.4%
- Communications (XLC) +1.3%
- Utilities (XLU) +1.1%
The lone loser…
- Energy (XLE) -1.1%
Shares of Tesla (TSLA^) rose 8% on Wednesday.
Several Wall Street analysts upgraded the stock…
- A Wedbush analyst called Tesla’s 58% plunge “overdone“
- An analyst for Citigroup (C) said the pullback “balanced out the near-term risk/reward”
The SPY is showing a clear uptrending channel…
Our reading of the market is generally bullish.
- The VIX fell to new 3-month lows
- RSI levels, the Dow remains overbought while the rest are neutral
- The Put-to-Call Ratio ended Wednesday oversold after jumping to 3-month highs near the open
Bears are growing more aggressive, but as the chart above shows, the trend is clearly pointing up.
Today, the markets will have a short session. The closing bell will ring at 1 pm.
Next week we’ll say goodbye to November.
So far, our analysis of Q4 has played out nearly perfectly. If the current trend holds true…
*NINE support at $8
*UCL on watch
PDSB resistance at $9, support at $8
SCPH support at $7
IMMR support at $7
DPRO support at $1
PBYI support at $4
^IMVT support at $13
WNC support at $24, resistance at $26
^MANU on watch
MGNX support at $6
^CROX support at $85
^RYAM support at $7
PRVB support at $8
MICT on watch
ADMA support at $2.85
TME resistance at $6
GILD support at $84