On Wednesday, the selling slowed, and the Dow managed to squeak a small gain. The other indexes posted modest losses…
- Dow Jones +0.0%
- Nasdaq -0.5%
- S&P 500 -0.2%
- Russell 2000 -0.3%
There were signs that the sellers may be running out of steam.
Beneath the surface…
- 42% of stocks advanced
- 54% declined
The reduced selling fits well with our projected weak open to December.
Sector Round Up
3 of 11 sectors ended Wednesday in the green. Volatility was low as no sector closed more than 1% away from the previous close.
Bulls were victorious in…
- Healthcare (XLV) +0.8%
- Consumer Staples (XLP) +0.4%
- Real Estate (XLRE) +0.2%
At the bottom…
- Consumer Discretionary (XLY) -0.6%
- Technology (XLK) -0.5%
- Communication (XLC) -0.5%
China scrapped “most Covid testing [and] quarantine requirements,” according to multiple media reports.
- The abrupt policy reversal comes after weeks of protests.
Carvana (CVNA) fell 43% on Wednesday after Bloomberg reported its biggest creditors formed a bankruptcy pact.
- The stock is down about 99% from all-time highs
- Investors have lost $22 billion in market cap over the past year
- A Wedbush analyst suggested the stock could be “worthless”
- We’re are steering clear of this dumpster fire
The VIX rose for a third straight day. A rising VIX typically favors the bears.
But as you can see on today’s chart, it’s still at a relatively low level compared to the rest of the year.
Over the past 52 weeks, the range for the VIX has been narrowing. This boosted our confidence that the election cycle “sweet spot” will deliver as expected.
Not much else to report from a technical standpoint…
- RSI levels are all neutral
- The Put-to-Call Ratio is oversold for the first time this week
This morning the latest unemployment filing numbers drop at 8:30.
The market has been sensitive to the labor market, so we’ll be keeping close tabs on the market’s reaction. Remember … never trust the first move.
Tomorrow the Producer Price Index (PPI) report drops with one of the last inflation readings before the FOMC meeting.
*USEAsupport at $3.70
*BBW support at $22
VOR support at $6
SMMT on watch
REPL support at $22
SIG support at $20
RCUS support at $31
^MANUresistance at $23
^CROX support at $95
^RYAM support at $8
PRQR support at $1.40
ASO support at $52
CPRX support at $16
TOUR support at $1.40
YEXT support at $6
GEO support at $11
MNSO support at $11
WDH support at $1.80
RLX support at $2.50
TME support at $7