5/10/23 Does The Market Care About The Debt Ceiling?


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%
Image from the NYT

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.

From Getty Images

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”


The S&P 500 is holding above the critical level of $410 for now…

SPY Daily Candles – Chart by thinkorswim

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.


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.


*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

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