On Friday, the markets bounced up from extremely oversold conditions. The tech-heavy Nasdaq led with a gain of 3.8%.
MarketWatch described the mood near the close as “panic-like buying.”
The best catalyst came from overseas where China is seeking to lift the lockdown restrictions in Shanghai. The latest report from Reuters points to a June 1 “return to normal.”
Twitter (TWTR^) fell nearly 10% after Musk declared his takeover bid was placed “on hold.”
Notable winners from Friday’s rally are Affirm (AFRM) +31.4%, Duolingo (DUOL) +34.0%, and Robinhood (HOOD) +24.9%.
Most indicators are neutral. The VIX is still at a relatively high level, which favors the bears.
VIX Daily Candles – Chart via thinkorswim
I’d like to see the uptrend broken just like we saw back in March.
It’s still earning season. This week is filled with retail sales. Walmart (WMT) reports on Tuesday, Lowe’s (LOW^) on Wednesday, and Footlocker (FL) on Friday.
See all the most anticipated earnings listed here.
Options expiration is on Friday.
I believe we have reached the bottom. I’m a net buyer for the rest of the summer. My hold times are months long.
TRMD has support at $11
HDSN has support at $8
LPG has support at $15
VTNR has support at $12
R has resistance at $85
VERU is on watch
BORR has resistance at $5
STKL is on watch
FRGE is on watch
HRB is on watch
UNM has support at $34