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12/20/23 Overbought and Not Slowing Down

News:

Markets continued their push higher on Tuesday.

AP Photo

The indexes each logged a day of gains…

  • Dow Jones +0.7%
  • Nasdaq +0.7%
  • S&P 500 +0.6%
  • Russell 2000 +1.9%

The Russell 2000 made new 52-week highs as the “January Effect” grips the market.

The S&P 500 ended just 28 points or 0.6% below its all-time high close. A new record is now inevitable.

Sector Round Up

All 11 sectors ended Tuesday’s session higher.

At the top…

  • Energy (XLE) +1.2%
  • Communication (XLC) +1.0%
  • Materials (XLB) +0.9%

At the bottom…

  • Utilities (XLU) +0.6%
  • Technology (XLK) +0.4%
  • Consumer Staples (XLP) +0.2%

Technicals: 

Of the big three indexes, the one furthest from all-time highs is the Nasdaq.

IXIC Daily Candles – Chart from Yahoo! Finance

As of Tuesday’s close, the Nasdaq was about 1,000 points, or 7%, away from its peak. The top came in late 2021.

We see no reason 16,000 can’t be breached in 2024.

Your latest readout…

Timing:

Today is slow news today.

Tomorrow, we’ll get the final Q3 GDP estimate. This number has been higher than anyone expected.

On Friday, PCE inflation data drops. 

Also on Friday, we’ll be watching for the “Santa Rally” to begin—The annual rally is a major indicator of what to expect in the year ahead.

Watchlist:

*Low Float
^Open Position

*IMMX support at $6
*OPFI support at $4, resistance at $4.50
*PLSE support at $14
^*MYO support at $4.50
ALXO support at $13
CRGX support at $17
FUSN support at $5.50
CENX support at $11, resistance at $12
ABSI support at $2.50
ASPN support at $13
PRCH support at $2.25

Secondary watchlist—float about 100 million

ESPR support at $2
RKT
on watch
GPS
support at $20
MOR support at $9
NMRK support at $10
BVN on watch
S support at $26
LYFT support at $13, resistance at $16
HOOD support at $13

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