News:
Stocks opened the week on a positive note Monday. 60% of stocks advanced, while 37% declined.
The major indexes were mostly higher…
- Dow Jones -0.4%
- Nasdaq +0.5%
- S&P 500 +0.0%
- Russell 2000 +1.2%
Fooled!
Shortly after the opening bell on Monday, a faked image showing an explosion near the Pentagon spread across social media.
Markets dipped and reached their session lows in the aftermath…
The markets quickly recovered the losses, but the danger of AI-generated media is becoming more and more apparent.
Sector Round Up
The sectors split. 6 of the 11 sectors closed Monday higher.
At the top…
- Communications (XLC) +0.9%
- Real Estate (XLRE) +0.7%
At the bottom…
- Materials (XLB) -0.5%
- Consumer Staples (XLP) -1.5%
Technicals:
The Nasdaq is now extremely overbought.
And history tells us a dip is inevitable…
Just note the magnitude of the ensuing dip can vary greatly, as shown on the chart above.
Our outlook remains bullish. But we are expecting some cooling in the risk-on stocks soon.
There’s nothing to suggest a larger sell-off is in order…
- The VIX is still holding near 52-week lows
- RSI levels are mostly neutral—the Nasdaq remains VERY overbought
- The Put-to-Call Ratio is neutral
Timing:
Debt ceiling talks continue to steal the headlines.
The markets are taking the brinkmanship in stride. The general consensus appears to be that a deal will be made in time.
Just remember, anything can happen.
Watchlist:
*Low Float
^Open Position
*NCPL support at $2
*WKEY support at $3.50
*AMAM support at $12
*UIHC support at $5
TAST support at $5.50
ORMP support at $4, resistance at $6
CRVS support at $3
ALPN support at $10
NNOX support at $16, resistance at $20
SDGR support at $35
APLD on watch
XFOR support at $1.80, resistance at $2.20
APST support at $25
AZUL support at $8, resistance at $10
NVTS support at $8
Secondary watchlist—float 100+ million
EVLV support at $5.50
TIO on watch
OTLK support at $1.40
ACVA support at $17
XERS support at $2.80, resistance at $4
RIOT support at $12
MVIS support at $3.50, resistance at $4
SANA support at $7
^IONQ on watch
AKBA support at $1.20
^NYCB support at $11
PLTR support at $11