Ahead of the open on Wednesday, stocks mainly drifted lower.
At 8:30, the latest retail sales figures from the U.S. Commerce Department were released … Spending grew by 3% in January, the most significant monthly increase in nearly two years.
Markets had little reaction to the news and still opened in the red. After the bell, it was all buyers all day.
Stocks moved higher throughout the day, and all 4 indexes closed with gains.
- Dow Jones +0.1%
- Nasdaq +0.9%
- S&P 500 +0.3%
- Russell 2000 +1.1%
The bulls were firmly in control but failed to dominate. 59% of all stocks gained, while 38% declined.
Sector Round Up
The sectors generally mirrored the market. 9 of 11 ended Wednesday in positive territory.
At the top…
- Consumer Discretionary (XLY) +1.2%
- Communications (XLC) +0.9%
- Utilities (XLU) +0.7
- Energy (XLE) -1.7%
- Healthcare (XLV) -0.5%
As earnings rolled in, the big winners were easy to spot. Many came straight from our weekly outlook on Monday.
- NerdWallet (NRDS) +26%
- Roblox (^RBLX) +26%
- Airbnb (ABNB) +13%
Meme stocks moved higher too…
- Gamestop (GME) +10%
- AMC (AMC) +15%
- Our new favorite, ContextLogic (^WISH), added 26%
Bitcoin^ made a new 6-month high. At writing, it’s trading near $24,700. The next significant resistance level is $25,000.
The market favors more risky trades, and greed has moved squarely into the driver’s seat.
Resistance and support aren’t always definitive lines … more often, they appear as zones.
The chart above shows the S&P 500 turning at a support zone that once acted as resistance.
Everything is aligning for the bulls to continue their run.
- The VIX fell again, it’s only closed lower once in the past year.
- RSI levels are all neutral
- The Put-to-Call Ratio is neutral
This morning at 8:30, the PPI report drops.
The market has been more sensitive to these inflation figures for the past few months, so we’ll be closely watching the reaction.
Remember … Never trust the first move.
^*BBAI support at $4
*RMTI support at $2.20, resistance at $2.50
*IVDA support at $2.20
BLBD on watch
FUSN support at $4
CAR support at $240
NRDS support at $14
BSGM support at $1.20
EHAB resistance at $16
QNST support at $16, resistance at $18
HYPR resistance at $1.60
ZGN support at $13
CDTX support at $1.60
VKTX support at $11
INDI support at $9
^AI support at $22
Secondary watchlist … float over 100 million:
TDC on watch
SLQT resistance at $2.50
MGNI support at $13
NGL on watch
SONO support at $21
NYT support at $38, resistance at $40
MIR support at $8.20
^PLTR support at $9