News:
Markets plummeted at the open on Friday after the January job’s report came in hot.
The economy added 517,000 new jobs, far above estimates of 187,000.
Strength in the labor market could help The Fed keep interest rates high for longer. At least, that’s what the market figures.
Markets climbed in the morning session and briefly traded in the green.
But in the end, the overbought conditions were too much, and the sellers pushed the markets down into the close.
All four major indexes closed red…
- Dow Jones -0.4%
- Nasdaq -1.6%
- S&P 500 -1.0%
- Russell 2000 -0.8%
Sector Round Up
The sectors follow suit. All 11 sectors ended Friday lower.
The best performers…
- Financials (XLF) -0.2%
- Energy (XLE) -0.2%
- Healthcare (XLV) -0.3%
At the bottom…
- Real Estate (XLRE) -2.1%
- Utilities (XLU) -2.1%
- Consumer Discretionary (XLY) -3.1%
Technicals:
The VIX rose on Friday and is higher this morning too. But overall it remains in a downtrend
In the chart below it’s easy to see the falling resistance…
If markets are going to break lower, this trend must be broken.
Right now, the selling appears to be relieving some of the overbought pressures.
This morning…
- RSI levels are mixed
- The S&P 500 & Nasdaq returned to neutral
- The Russell 2000 remains overbought
- The Dow remains neutral
- The Put-to-Call Ratio is neutral
Timing:
This week, earnings continue to roll in. Here are the highlights…
- After the close today, Pinterest (PINS)
- Wednesday premarket, Uber (UBER)
- Wednesday after hours, Disney (DIS) & Robinhood (HOOD)
- Thursday after-hours, Paypal (PYPL) & Lyft (LYFT)
Watchlist:
*Low Float
^Open Position
*BBAI support at $4
*RVSN support at $1.80
*GNS support at $6
*GAME resistance at $1.75
^AEHR resistance at $37
TRVG support at $1.80
CABA support at $12
^VERI support at $9
LPG support at $21
WNC support at $26
TBBK on watch
CDTX resistance at $1.60
LPSN support at $16
TWOU support at $12
CBAY support at $8
AI support at $22
Secondary watchlist, stocks with 100+ million float.
EGHT support at $6
SUMO support at $12
TGTX on watch
OI support at $20
PTON support at $14
IQ support at $7