Markets opened to positive news on Tuesday.
According to the National Assoc. of Realtors, “Existing-Home Sales Surged 14.5% in February, Ending 12-Month Streak of Declines.”
Throughout the day, stocks pushed higher and showed bullish tendencies. 75% of all listed stocks closed higher.
And each of the major indexes closed solidly in the green…
- Dow Jones +1.0%
- Nasdaq +1.6%
- S&P 500 +1.3%
- Russell 2000 +1.9%
As far as the banking crisis goes…
Headlines touted First Republic’s (FRC) +30% rally after Treasury Secretary Janet Yellen said “outflows have stabilized” and “our banking system is resilient.”
However, the chart for FRC tells a different story…
FRC stock is down nearly 90% over the past month, even after yesterday’s surge.
Sector Round Up
Tuesday’s rally did include the vast majority of stocks, but not every sector participated. Of the 11 sectors, 8 end the day higher.
At the top…
- Energy (XLE) +3.5%
- Consumer Discretionary (XLY) +2.8%
- Financials (XLF) +2.5%
- Consumer Staples (XLP) -0.1%
- Real Estate (XLRE) -0.6%
- Utilities (XLU) -2.0%
A few notes from this reading…
- Only one of the “risk-on” sectors ended in the top three
- Financial stocks did not lead the charge
- Real Estate finished near the bottom despite the positive news in the sector
Meme Stock Madness
Meme stock, Gamestop (GME^), climbed about +50% in after-hours trading on the heels of a surprise profit.
The markets are at a critical point.
The S&P 500 closed at converging resistance levels ahead of The Fed’s big announcement…
Markets have surged higher in recent days.
But today’s announcement will likely break a trend. Which trend? … We can’t say.
Our latest reading gives the bulls a slight advantage…
- The VIX fell below 22.50 for the first time since the bank crisis began
- RSI levels are all neutral
- The Put-to-Call Ratio is marginally oversold
At 2 PM today, The Fed will announce its new interest rate.
A hike of 0.25% is the most likely outcome. However, the case has been made for both a pause and a 0.5% increase.
Fed Chair Powell will take the stage at 2:30.
Expect a volatile day.
*CRBP support at $6
*BLPH on watch
ELEV support at $2
^AEHR resistance at $37
ARAV support at $2.20
^CIFR support at $2, resistance at $2.50
MGNX support at $7
PRQR support at $3.50
DTC support at $6
CDTX support at $1.80, resistance at $2
EMAN on watch
^INDI support at $10
^SQSP support at $28
NVTS support at $7
IOT support at $18
RELY support at $15, resistance at $16
RIOT support at $8
ONON on watch