On Monday, stocks moved away from all-out panic.
After a flat open, stocks trended generally higher. And each of the major indexes closed solidly in the green…
- Dow Jones +1.2%
- Nasdaq +0.4%
- S&P 500 +0.9%
- Russell 2000 +1.1%
Markets appeared somewhat relieved that Central Banks and regulators are intervening in the near financial meltdown.
The latest effort to calm markets came from The Fed. It unveiled new “Swap Lines” to boost global liquidity of the global currency … The U.S. Dollar.
One estimate concluded that central banks would need $17 trillion to guarantee all bank deposits.
How this all fits into the fight against inflation is anyone’s guess.
Sector Round Up
60% of all listed stocks posted gains on Monday. That was enough for all 11 sectors to end the day higher.
At the top…
- Materials (XLB) +2.1%
- Energy (XLE) +2.0%
- Consumer Staples (XLP) +1.4%
The “risk-on” sectors finished at the bottom…
- Communications (XLC) +0.8%
- Consumer Discretionary (XLY) +0.4%
- Technology (XLK) +0.3%
The VIX is range bound…
The top level is 27.5, and the bottom level is 22.5. We don’t know which way it will break next.
It’s holding smack dab in the middle of its annual range. We’ll keep close tabs on how the fear gauge reacts to The Fed’s next move tomorrow.
Yesterday’s gains did bring balance back to the market…
- RSI levels are all neutral once again
- The Put-to-Call Ratio returned to neutral also
Futures are higher, but every gap has been filled since this bank crisis began.
The second FOMC meeting of 2023 convenes today.
All eyes will be watching The Fed for its latest move, which is set to be announced tomorrow afternoon.
*CRBP support at $6
*BLPH on watch
ELEV support at $2
^CIFR support at $2, resistance at $2.50
DKS support at $140
MGNX resistance at $7
DTC support at $6
EMAN on watch
^INDI support at $10
SQSP support at $25, resistance at $28
IOT support at $18
RELY support at $15, resistance at $16
RIOT support at $8