News:
The latest CPI report showed inflation is continuing to trend lower.
Price gains from last month and last year were tame.
- +0.1% month-over-month
- +3.1% year-over-year
Initially, profit-takers sent the market to a red open. But buyers showed once again to push the indexes mostly higher by the close…
- Dow Jones +0.5%
- Nasdaq +0.7%
- S&P 500 +0.5%
- Russell 2000 -0.1%
Under the surface, the divide was even. Of all listed stocks…
- 48% advanced
- 48% declined
Sector Round Up
8 of 11 sectors were positive at Tuesday’s close
At the top…
- Financials (XLF) +0.7%
- Technology (XLK) +0.7%
- Materials (XLB) +0.6%
The biggest loser out-paced the biggest winners…
- Real Estate (XLRE) -0.0%
- Utilities (XLU) -0.4%
- Energy (XLE) -1.4%
Technicals:
Fear levels are trending lower with inflation…
The VIX hit a new 52-week low on Tuesday.
Don’t expect it to move much lower than the current level. A super low VIX is a telling sign that the market lacks fear.
Levels this low haven’t been seen since the 10-year bull market that ended with the Pandemic crash.
Your latest readout…
- RSI levels are overbought in the three major indexes
- The put-to-call ratio is neutral
Timing:
Today at 2 PM, the Fed will announce its latest interest rate decision.**
It’s widely expected that rates will remain unchanged.
After the announcement, Fed Chair Powell will address reporters. His comments will likely overshadow the decision.
**Earlier updates incorrectly stated there was a FOMC minute release today.
Watchlist:
*Low Float
^Open Position
*CHSN support 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
HNST support at $2.50
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
^IOT support at $32.50, resistance at $35
S support at $22
LYFT support at $13