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3/27/23 A Buyer Emerges, Friday’s Lower Low

News:

On Friday, the markets ended generally higher.

After gapping down and opening in the red, buyers steadily pushed prices higher into a modest victory for the bulls.

Every major index ended the day with gains…

  • Dow Jones +0.4%
  • Nasdaq +0.3%
  • S&P 500 +0.6%
  • Russell 2000 +0.9%

The gains came despite new cracks showing the global banking system.

Photos by Getty Images & First Citizens Bank

Shares of German-based Deutsche Bank (DB) tumbled more than 10% in early trading as fear spread that it could be the next bank to fail.

  • Regulators and other banks defended against the failure rumors
  • DB stock closed down just 3%

Significant portions of Silicon Valley Bank, whose failure started the banking crisis, are being acquired by the 125-year-old Raleigh, NC-based **First Citizens Bank (FCNCA), according to a press release.

  • The bank will “assume … deposits of $56 billion and loans of $72 billion”
  • It plans to reopen 17 branches operating as “Silicon Valley Bank, a division of First Citizens Bank”
  • At writing, shares of FCNCA are up more than 12% in pre-market trading

**Trading For Keeps is a registered DBA. Its parent company maintains deposits at First Citizens Bank.

Sector Round Up

During Friday’s generally bullish session, the sectors mirrored the indexes.

9 of the 11 sectors ended Friday in positive territory.

The safer sectors were at the top…

  • Utilities (XLU) +3.1%
  • Real Estate (XLRE) +2.6%
  • Consumer Staples (XLP) +1.7%

The losers…

  • Financials (XLF) -0.1%
  • Consumer Discretionary (XLY) -0.3%

Technicals: 

Let’s zoom on the S&P 500’s chart…

SPY Daily Candles – Chart by thinkorswim

Despite Friday’s gains, the overall direction is still pointing lower. 

Friday’s session posted both a lower low and a lower high than the previous session, making a case for the bears.

At this point, we don’t have enough evidence to flip bullish. A clean breakout above $400 will force us to reconsider.

Our top data points are tilted toward the bulls…

Timing:

It’s the last trading week in March. The coming Friday will mark the end of Q1 2023.

Scheduled news is light this week…

  • Tuesday, Micron Technology (MU) reports earning after hours
  • Thursday, The final GDP estimate for Q4 2022 will drop premarket

Watchlist:

*Low Float
^Open Position

*DHHC on watch
*JMAC support at $12
*BLPH support at $7
^AEHR support at $37
ZURA on watch
ARAV support at $2.20
^CIFR support at $2, resistance at $2.50
ETNB support at $15.50
ALDX support at $8
NAAS resistance at $6
PRQR support at $3.50
DTC support at $6, resistance at $6.80
ACCD support at $13, resistance at $13.50
EMAN on watch
^SQSP support at $28
NVTS resistance at $7
^IOT resistance at $18
KC support at $5.50
AUPH support at $10
RELY support at $16
RIOT support at $8
ONON support at $28

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