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…
- The Santa Rally
- The early warning
- The January barometer
History offers clues about what happens after a bullish trifecta…
- 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…
We can’t find a single reason to be bearish right now.
Our latest reading…
- The VIX is still in a downtrend
- The Put-to-Call Ratio is neutral
- RSI levels are all neutral
Timing:
Today is the day the market has been waiting for…
- At 2 pm, The Fed will release the latest interest rate.
- At 2:30, Fed Chair Powell takes the stage to deliver prepared remarks
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