News:
Thursday’s release of the Producer Price Index (PPI) revealed a greater decline in prices from February to March than at any point during the last year.
The year-over-year change was remarkably low, coming in at just +2.7%, only marginally higher than The Fed’s goal of +2%.
Data from the US BLS
The data release begs the question … has The Fed met its goal? Is a pivot around the corner?
We will have to wait and see…
The next FOMC meeting is scheduled for the first week of May.
After Thursday’s data release, markets opened higher and climbed steadily through the day.
At the close, all four major indexes were sharply higher…
- Dow Jones +1.1%
- Nasdaq +2.0%
- S&P 500 +1.3%
- Russell 2000 +1.3%
Sector Round Up
The bulls almost pulled off a sweep of the sectors, but 1 of the 11 slipped lower.
The “risk-on” sectors dominated. At the top…
- Consumer Discretionary (XLY) +2.2%
- Communications (XLC) +2.1%
- Technology (XLK) +1.9%
The lone loser…
- Real Estate (XLRE) -0.3%
Photo from Getty Images
There was news that contributed to the decline in the Real Estate sector … According to the latest data from Freddie Mac, mortgagees fell for a 5th consecutive week.
Technicals:
The S&P 500 represents about 80% of the market cap in the US stock market. It’s trend is shown in the chart below.
SPY Daily Candles – Chart by thinkorswim
For the first time in 2 months, the SPY closed above the critical level of $410.
Today we’ll be watching for that level to hold. $420 is the next critical resistance level.
However, the market is looking a little toppy at the moment…
- The VIX closed at its lowest level in over a year
- RSI levels are nearing overbought … the Dow Jones is already there
- The Put-to-Call Ratio is neutral
Timing:
This morning is the unofficial kick-off of earnings season.
Several big banks are reporting their Q1 results before the opening bell. Those include…
- JPMorgan Chase (JPM)
- Citigroup (C)
- Wells Fargo (WFC)
This is the first earnings season since the banking crisis began.
Watchlist:
*Low Float
^Open Position
*GFAI support at $20
ARCT support at $27
SCPH support at $10
ALDX support at $10
CLSK resistance at $4
^CIFR support at $2.50
WW support at $7
APLD support at $3.50
DTC support at $8
LVO resistance at $1.40
VKTX support at $18
^EMAN support at $2.30
^SQSP support at $32
Secondary watchlist—float 100+ million
^IOT support at $18, resistance at $20
TIO support at $1.20/1.30
XERS support at $2
TGTX support at $20
RIOT on watch
^IONQ support at $6, resistance at $7
ARDX support at $4.20
NGD support at $1.20