News:
On Tuesday, the markets opened lower once again … But this time, buyers failed to emerge.
Looking for a reason? … Look at the banks.
Image from CNN
Shares of First Republic Bank (FRC) fell 50% to new all-time lows on Tuesday. Investors fled in light of Monday’s earnings report.
And the report was just enough to spook the markets and tilt the balance in favor of the bears. The indexes all closed sharply lower…
- Dow Jones -1.0%
- Nasdaq -2.0%
- S&P 500 -1.6%
- Russell 2000 -2.4%
Sector Round Up
The blood bath was widespread. All 11 sectors posted losses on Tuesday…
Table from Finviz
Falling the least…
- Utilities (XLU) -0.1%
- Consumer Staples (XLP) -0.1%
At the bottom…
- Consumer Discretionary (XLY) -2.0%
- Technology (XLK) -2.1%
- Materials (XLB) -2.2%
Technicals:
The S&P 500 has been trading in a tight range (orange) and, prior to yesterday’s session, established itself above the critical level of 410 (yellow).
SPY Daily Candles – Chart by thinkorswim
The strong red candle does not bode well for the bulls.
As always, we never put too much weight into a single data point. We’re closely monitoring the price action for continued selling.
Here’s our latest reading…
- The VIX closed above 18 for the first time in 2 weeks
- RSI levels are neutral
- The Put-to-Call Ratio is oversold
Timing:
The Stock Trader’s Almanac officially issued its seasonal sell order for the S&P 500 & Dow Jones seasonal trades after yesterday’s close.
We liquidated our positions at the onset of the banking crisis … We never reestablished those positions as the end of the best six months was so close.
Watchlist:
TMDX support at $82
SONM support at $1
APLT support at $1.20
IDYA support at $18
TNYA support at $4, resistance at $6
SA support at $14
TDUP support at $2.60
CBAY support at $9.60
Secondary watchlist—float 100+ million
TIO resistance at $2
XERS support at $2.20
TGTX support at $20
RIOT support at $10
HIMS support at $10.50
LEGN on watch