News:
Markets retreated some on Tuesday.
The indexes opened lower and moved sideways throughout the session.
The close was generally lower…
- Dow Jones -0.2%
- Nasdaq -0.6%
- S&P 500 -0.5%
- Russell 2000 -0.3%
Debt ceiling negotiates, or lack thereof were the primary headline on Tuesday.
- According to the Treasury Secretary, Janey Yellen, the U.S. Federal government could default on its obligations as soon as June 1 if Congress and the President fail to act.
- President Biden and Speaker McCarthy met face-to-face on Tuesday
- According to McCarthy, there was not “any new movement.”
Our take … the market barely moved. At this point, the market assumes the whole ordeal is just brinkmanship.
Sector Round Up
The sectors ended Tuesday’s session mostly lower.
At the close, 9 of 11 were in the red.
The winners…
- Industrials (XLI) +0.2%
- Energy (XLE) +0.0%
At the bottom…
- Healthcare (XLV) -0.7%
- Technology (XLK) -0.8%
- Materials (XLB) -0.9%
AI In Focus
Artificial Intelligence is the leading theme in the current earnings season.
Share of tech company Palantir (PLTR) was the latest to catch the hype.
PLTR surged 23% and added $3 billion in market cap after its latest earnings call.
- Its earnings beat Wall Street estimates
- The CEO outlined plans to “capitalize on rising business interest in artificial intelligence”
Technicals:
The S&P 500 is holding above the critical level of $410 for now…
Over the next few days, we’ll get the latest inflation data.
If the market can hold on to $410 after digesting the news cycle, then markets will be poised to move higher.
Markets are relatively calm ahead of today’s news drop.
- The VIX holding below 18
- RSI levels are neutral
- The Put-to-Call Ratio is neutral
Timing:
At 8:30 this morning, the latest CPI inflation data drops.
Expect a volatile reaction to the news. And don’t believe the first move.
Watchlist:
*Low Float
^Open Position
*NERV support at $6
*TCMD support at $19
ELEV on watch
VYGR on watch
PLX support at $3
ASRT resistance at $7
IDYA support at $20
COCO support at $24
NNOX support at $16
HOOK support at $1.40
AQST support ta $1.80, resistance at $2
TNYA support at $6, resistance at $7
SA support at $16
^TDUP support at $3
^CBAY support at $10
JELD support at $14
Secondary watchlist—float 100+ million
HLIT support at $16
TIO support at $2.50
MDGX resistance at $6
XERS support at $2.40
RIOT support at $10, resistance at $12
HIMS support at $10.50, resistance at $12
IMGN on watch