The latest inflation report, the PCE Index, showed that inflation might be flatlining.
The year-over-year monthly reading showed higher spending for the first time since September 2022…
The market disapproved of the number and dived on Friday. All of the indexes ended the day deep in the red…
- Dow Jones -1.0%
- Nasdaq -1.7%
- S&P 500 -1.1%
- Russell 2000 -0.9%
And while the indexes look ugly. Buyers in some sectors managed to push prices higher.
Sector Round Up
Friday, without questions, belonged to the bears.
But the bulls didn’t go quietly into the night. 3 of the 11 sectors closed the day higher.
- Materials (XLB) +0.7%
- Financials (XLF) +0.1%
- Utilities (XLU) +0.0%
At the bottom…
- Real Estate (XLRE) -1.9%
- Technology (XLK) -1.8%
- Consumer Discretionary (XLY) -1.6%
There are two crucial points to take from Friday’s price action.
- The PCE report is a single data point.
- The bears failed to dominate
Friday’s selloff failed to gather any real steam as no fear emerged from the market.
The VIX tried to push above 22.50…
But as you can see on the chart, that level was rejected. The fear gauge didn’t move significantly higher.
Our reading suggests the selling could be short-lived.
- RSI levels are all neutral but nearing oversold
- The Put-to-Call Ratio remains oversold … that’s five days now
We are holding a neutral stance with a bullish lean.
Only two trading days remain in February.
Earnings continue to pour in this week. Here’s what we’ll have an eye on…
- Target (TGT) Tuesday premarket
- AMC (AMC^) Tuesday after hours
- NIO (NIO) Wednesday premarket
- Salesforce (CRM) Wednesday after hours
- Chargepoint (CHPT) Thursday after hours
*AMAMsupport at $4
*ADXN support at $2
RCEL support at $10
SERA support at $3
TNK on watch
TMDX support at $70
NRDS support at $18
MAX support at $15
QNST resistance at $18
CARS support at $18
VKTX support at $11
INDI support at $10
XPRO support at $22
TDC support at $40
ACVA support at $11.50
SLQT support at $2
NEO support at $14
RELY support at $13
CSTM support at $16
MIR support at $9