News:
On Tuesday, the market posted modest declines.
The leading cause was Home Depot’s (HD) earnings.
- Its revenues were down about 4% in Q1
- The company projected an annual decline in sales for the first time since 2009
- HD stock fell about 2% on the day
The decline in household spending caused buyers on Wall Street to pause. The indexes all finished red.
Bear in mind HD is a Dow component…
- Dow Jones -1.0%
- Nasdaq -0.2%
- S&P 500 -0.6%
- Russell 2000 -1.4%
Sector Round Up
Most sectors ended the day lower.
The single winner…
- Technology (XLK) +0.1%
At the bottom…
- Utilities (XLU) -2.2%
- Energy (XLE) -2.5%
- Real Estate (XLRE) -2.7%
The “risk-on” sectors we clustered at the top. Communications (XLC) and Consumer Discretionary (XLY) came in 2nd and 3rd, respectively. Each fell less than 0.5%.
Technicals:
The bears managed a win on Tuesday.
But that doesn’t mean the tides are turning.
The Nasdaq continues to show strength, and there seems to be little that will quell investors’ appetite for risky stocks…
The tech-heavy Nasdaq continues to post new seasonal highs.
We remain bullish.
- The VIX is holding steady below 18
- RSI levels are neutral
- The Put-to-Call Ratio is neutral
Timing:
There are two situations we’re monitoring that could cause jolts to the market…
- This Friday is options expiration day.
- The US Government could default in as little as two weeks. And debt ceiling talks are going nowhere fast…
Watchlist:
*Low Float
^Open Position
*AMAM support at $12
*GSIT support at $4
*UIHC support at $5
APYX support at $5, resistance at $6
CRVS support at $2
COCO support at $24
NNOX support at $16
APLD on watch
JELD support at $14
ARLO on watch
NVTS support at $7
Secondary watchlist—float 100+ million
RDFN support at $10
EVLV support at $5
TIO on watch
ACVA support at $16
XERS support at $2.50
RIOT resistance at $12, support at $10
SANA support at $7
^IONQ support at $7