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2/1/23 Here are the Odds: 83%, 92% & 100%

News:

Markets finished higher on Tuesday, technical support held, and a new major breakout was recorded … More on that below.

The major indexes all but erased Monday’s losses…

  • Dow Jones +1.1%
  • Nasdaq +1.7%
  • S&P 500 +1.5%
  • Russell 2000 +2.5%

January finished the month up 6.2% … its best performance since 2019.

2019 is also the last time the January trifecta ended with a 3-0 record in favor of the bulls. The trifecta includes…

History offers clues about what happens after a bullish trifecta…

Image from knowyourmeme
  • 83% of the time, the year ends green
  • 92% chance bulls prevail when it’s a pre-election year 
  • 100% — the year after a bear market, bulls have yet to lose

Sector Round Up

All 11 sectors ended Tuesday higher.

At the top…

  • Consumer Discretionary (XLY) +2.3%
  • Materials (XLB) +2.2%
  • Real Estate (XLRE) +1.8%

At the bottom…

  • Consumer Staples (XLP) +1.1%
  • Energy (XLE) +0.9%
  • Utilities (XLU) +0.7%

Technicals: 

The Dow Jones ended its bear market on November 30.

The Nasdaq broke out on January 24.

The S&P 500 broke out and held support on January 27 and 31, respectively.

Now the Russell 2000 is joining the party…

RUT Daily Candles – Chart via thinkorswim

We can’t find a single reason to be bearish right now.

Our latest reading…

Timing:

Today is the day the market has been waiting for…

We’ll be watching the market’s reaction and reading the statement after the close.

You’ll get a full update tomorrow morning. 

Happy Trading :)

Watchlist:

*Low Float
^Open Position

*CUEN support at $1
*MGAM support at $1.75
SY support at $2.50
^AEHR support at $30
CABA support at $12
DPRO on watch
TBBK support at $32
APLD support at $3
BZFD support at $2
CBAY support at $8
TOUR resistance at $2.50
SUMO support at $11, resistance at $12
TGTX support at $14
HIMS support at $8
AMLI support at $3.30
IQ resistance at $7
TUYA support at $2.75

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