On Monday, markets opened in the red. By lunchtime, the big three indexes all moved into positive territory.
But the gains were short-lived.
At the close, markets were mixed…
- Dow Jones -0.3%
- Nasdaq +0.4%
- S&P 500 -0.2%
- Russell 2000 -1.6%
Underneath the surface, the action belonged to the bears. 63% of stocks fished the day lower, and just 35% advanced.
Investors continued to flee the financial sector in search of safer alternatives.
Sector Round Up
6 of 11 sectors ended Monday with gains.
At the top…
- Real Estate (XLRE) +1.7%
- Utilities (XLU) +1.5%
- Healthcare (XLV) +0.9%
At the bottom…
- Materials (XLB) -1.0%
- Energy (XLE) -2.0%
- Financials (XLF) -4.0%
Searching for Safety
Gold^, silver & Bitcoin^ all moved higher on Monday as investors fled the financial sector.
The collapse of several banks has spooked the markets. And despite the press and government officials’ attempts to calm fears, markets have little confidence in the current financial institutions.
The Dow Jones completed its second Down Friday/Down Monday of 2023.
We’ve marked a few from last year and both of this year’s occurrences on today’s chart…
DF/DM are staples of bear markets.
We noted February’s occurrence but didn’t flip bearish on a single data point. Now the evidence is mounting … the market is pointing lower.
This morning we are expecting a bounce as oversold conditions grow…
- The VIX continues to trend higher
- RSI levels are oversold
- The Put-to-Call Ratio is oversold
Our current outlook is bearish. We will sell into a significant bounce this week.
The latest inflation data drops this morning.
At 8:30, the Consumer Price Index (CPI) will provide additional insight into the fight against inflation.
*BLPH on watch
*AMAM support at $8
*RRGB support at $11
PTGX support at $24, resistance at $26
DKS support at $140
DTC support at $5.50
SQSP support at $25
^INDI support at $10
IOT support at $18
RELY support at $15
ARDX support at $3.50
GOTU support at $4.50
BGCP support at $4.75