On Tuesday, the market logged another choppy session and another victory for the bulls. The 3 major indexes ended the day green.
- Dow Jones +1.0%
- Nasdaq +0.5%
- S&P 500 +0.6%
- Russell 2000 -0.0%
Beneath the surface, it’s not as rosy. 56% of stock advanced, while 40% declined.
One asset class was hit especially hard…
This morning, the crypto market is in shambles.
- One of the largest exchanges, FTX, faced a “liquidity crunch.”
- Binance, the world’s largest crypto exchange, has agreed to buy the failing firm.
- FTX stepped to buy many failing firms after the collapse of Luna & Celsius earlier this year.
This morning Bitcoin^ is trading at 52-week lows near $17,500
- The global crypto market cap lost about $120 billion in the last 24 hours.
- This shake-up has not changed our long-term bullish view
- Current prices are still within our projected range
Sector Round Up
Back in stock land, as midterms finally drew to a close, things aren’t so dreary. 10 of 11 sectors ended Tuesday green.
The top performers…
- Materials (XLB) +1.7%
- Technology (XLK) +1.0
- Industrials (XLI) +0.9%
The lone loser…
- Consumer Discretionary (XLY) -0.3%
The SPY regained the critical $380 level yesterday…
The rising support and break through this critical level strongly indicate that bulls are in control.
As election uncertainty hangs over the market, our signals are mixed…
- The VIX rose slightly
- RSI levels … the Dow Jones is overbought, while the rest are neutral
- The Put-to-Call Ratio is oversold
At writing, control of the House and the Senate is not 100% clear.
The market still expects at least one to fall back into Republican control.
Tomorrow we’ll get the latest CPI inflation data. That could jolt the market more than the election results.
*KLXE support at $16
*^RELL resistance at $24
*NINE on watch
SLS support at $5
ARQQ support at $9
RETA support at $38
ASC resistance at $14.20
^IMVT support at $12
NRDS support at $13
WNC resistance at $22
ELF on watch
PCVX resistance at $45
PARR resistance at $24
MGNX support at $5.50
^CROX support at $80
JUPW resistance at $1.20
RYAM support at $7
VIST resistance at $14
OII support at $14
IGT support at $23
BTU support at $29
GILD support at $80