On Thursday, markets opened on a weak note.
The ECB surprised markets with a sharp interest rate hike of +0.5%, citing inflation concerns.
Soon a glimmer of hope arrived. Big banks dropped a whopping $30 billion to rescue the suffering First Republic Bank (FRC) … A private solution to a growing problem.
After news of the deal broke, markets ripped higher. The indexes closed sharply higher and near their highs…
- Dow Jones +1.2%
- Nasdaq +2.5%
- S&P 500 +1.8%
- Russell 2000 +1.4%
The big banks we’re not alone with rescue bailouts. The Fed is poised to inject $2 trillion in new liquidity, according to an assessment by JP Morgan (JMP).
Sector Round Up
It was all green across the board on Thursday. 10 of 11 sectors ended the day higher, and the remaining ended flat.
At the top…
- Technology (XLK) +2.8%
- Communications (XLC) +2.3%
- Financials (XLF) +1.9%
At the bottom…
- Utilities (XLU) +0.7%
- Consumer Staples (XLP) +0.1%
- Real Estate (XLRE) 0.0%
Bitcoin’s New Buyers
The distrust of the existing financial system is driving more people to buy Bitcoin^.
This morning the digital asset is holding steady above $26,000 for the first time in more than nine months.
We’re watching for a retest of $25,000 to confirm support. We also continue to accumulate on a weekly basis.
The VIX has three critical levels to watch.
This week all of them have been in play…
If it can close below 22.50, our bear case is dead.
Today our outlook is neutral. We are maintaining our short position but could cover for a loss if markets close strong today.
We’ll continue to monitor all the signs…
- RSI levels are all neutral
- The Put-to-Call Ratio returned to neutral
Today is the first triple witching of the year.
With fresh liquidity and a lot of uncertainty in the markets were expecting the day to be a wild ride.
*BLPH resistance at $7, support at $6
*AMAM support at $8
ELEV support at $2
DKS support at $140
MGNX resistance at $7
DTC support at $6
SQSP support at $25, resistance at $28
EMAN support at $1.20
^INDI support at $10
IOT support at $18
FSLY resistance at $16
RELY support at $15, resistance at $16
ARDX support at $3.50, resistance at $4.10
BGCP support at $5.25