News:
Markets opened red and moved sideways throughout much of Wednesday’s trading session.
At 2 PM, the latest FOMC minutes dropped, and the market barely reacted…
The minutes showed what we’ve already heard from Fed officials—The Fed’s next move is not clear.
- Wording suggesting additional hikes are imminent was removed.
- Inflation remains above the Fed’s target
- The next rate decision will be made on June 14
In the final hour of trading, markets tried to rally. The S&P 500 and Nasdaq reach session highs at 3 PM.
But sellers stuffed the rally, and the indexes all closed red for a second day.
- Dow Jones -0.8%
- Nasdaq -0.6%
- S&P 500 -0.7%
- Russell 2000 -1.2%
Sector Round Up
10 of 11 sectors end Wednesday in the red.
The lone winner, once again…
- Energy (XLE) +0.4%
At the bottom…
- Industrials (XLI) -1.3%
- Finance (XLF) -1.3%
- Real Estate (XLRE) -2.2%
Technicals:
Sometimes a straight line tells the whole story…
Support held at the critical support level marked on the chart above.
This morning futures for the S&P 500 and Nasdaq and notably higher. A higher open doesn’t always bring an intraday rally…
We’ll be watching to see how the market closes.
A few data points to note…
- The VIX bounced off of 20 on Wednesday after breaking through 18 on Tuesday
- RSI levels are all neutral, the Dow is nearing oversold
- The Put-to-Call Ratio is lightly oversold
Our take—the market is trying to form a local bottom.
Timing:
June 1, the date the U.S. could begin defaulting on its obligations, is just 7 days away.
Before we get there, we have a holiday weekend to get through.
And another news drop this morning…
Initial GDP estimates for Q2 showed +1.1% annualized growth. At 8:30 this morning, the Bureau of Economic Statistics will release a revised estimate.
The market will be watching for hints of economic heating or cooling in the report.
Watchlist:
*Low Float
^Open Position
*AMAM support at $14
*UIHC support at $6
TAST support at $5.50
ORMP support at $4
ALPN support at $10
NNOX support at $16, resistance at $20
ONCY support at $2
APLD support at $7
URBN support at $30
UPST support at $25
AZUL support at $8, resistance at $10
Secondary watchlist—float 100+ million
EVLV support at $5.50
OTLK support at $1.40
ACVA support at $17
XERS support at $2.80, resistance at $3
RIOT resistance at $12
MVIS support at $4
^IONQ support at $9
PLTR support at $11/$12