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.
- 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%
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
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.
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