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12/5/23 Overdue Retreat

News:

Markets opened the new week with some selling.

The indexes moved mostly sideways through the session. 

Charts from Finviz

The selling was limited and tame. 3 of the 4 indexes closed the day lower…

  • Dow Jones -0.1%
  • Nasdaq -0.8%
  • S&P 500 -0.5%
  • Russell 2000 +0.1%

Sector Round Up

4 of the 11 sectors closed Monday higher.

At the top…

  • Real Estate (XLRE) +0.6%
  • Healthcare (XLV) +0.2%
  • Industrials (XLI) +0.2%

At the bottom…

  • Communications (XLC) -1.0%
  • Materials (XLB) -1.2%
  • Technology (XLK) -1.2%

Technicals: 

The overbought conditions began to subside during Monday’s session.

The chart below represents the Nasdaq 100…

QQQ Daily Candles – Chart from thinkorswim

Not only did yesterday’s selling alleviate the overbought RSI it also held support at a key level.

It’s the most bullish selling you’ll ever see.

Your latest readout…

Timing:

Expect a slow week in the news cycle.

Next week there will be tons of new data for the market to digest.

Watchlist:

*Low Float
^Open Position

*DRCT support at $12.50
*SHOT support at $5
*MYO support at $3.50
HRTG support at $9
AAOI support at $16
HNST support at $2, resistance at $2.5
FL support at $28

Secondary watchlist—float about 100 million

BLUE support at $4
TALK support at $2
NMRK
support at $8
CLSK support at $7
^IOT support at $30/32
GPS on watch
AFRM on watch
LYFT support at $12, resistance at $13
SID support at $3.20

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