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12/12/23 Sellers Are Beat, When It Could Change

News:

Markets opened the new week with more gains on Monday. 

Despite the onslaught of news to come … Bulls are winning day after day.

From Getty Images

The indexes all closed green…

  • Dow Jones +0.4%
  • Nasdaq +0.2%
  • S&P 500 +0.4%
  • Russell 2000 +0.2%

Sector Round Up

10 of 11 sectors were positive at Monday’s close.

At the top…

  • Consumer Staples (XLP) +1.0%
  • Industrial (XLI) +1.0%
  • Technology (XLK) +0.9%

The only loser…

  • Communications (XLC) -0.8%

Under the surface, it appears that sellers were making some progress on Monday. Of all the listed stocks…

  • 52% advanced
  • 43% declined

Technicals: 

The market is out of balance once again…

SPY Daily Candles – Chart from thinkorswim

The S&P 500 closed at a new 52-week high.

But it’s back in overbought territory, a level that history tells us is unsustainable.

Your latest readout…

Timing:

At 8:30, this morning, the latest headline inflation reading will drop in the form of the CPI report.

More cooling is widely expected.

Watch out for a “sell the news” situation. That is, even a super low level could be met with selling.

Watchlist:

*Low Float
^Open Position

*SSNT support at $10
*CHSN support at $7, resistance at $8.50
OPFI support at $4
ALXO support at $12
AAOI support at $18
GTHX support at $3, resistance at $18
APLT support at $3
ASPN support at $12, resistance at $13
PRCH support at $2

Secondary watchlist—float about 100 million

GPS on watch
NMRK support at $8.50
CLSK support at $9
^IOT support at $32.50, resistance at $35
AFRM support $40
S support at $22
LYFT support at $13

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