On Friday, markets headed into the long weekend on a positive note.
The indexes all rose despite uncertainty surrounding the debt ceiling…
- Dow Jones +1.0%
- Nasdaq +2.2%
- S&P 500 +1.3%
- Russell 2000 +1.1%
On Friday, Treasury Secretary Janet Yellen pushed the default day back from June 1 until June 5.
Then President Biden and Speaker McCarthy announced a deal over the weekend. The bill could reach the House floor for a vote as soon as Wednesday.
Sector Round Up
Despite the strong performance in the indexes, not every sector participated in Friday’s rally.
Of the 11 sectors, only 8 ended Friday’s session in positive territory.
Risk-on stocks led the charge…
- Technology (XLK) +2.8%
- Consumer Discretionary (XLY) +3.4%
- Communications (XLC) +2.0%
At the bottom…
- Utilities (XLU) 0.0%
- Healthcare (XLV) -0.2%
- Energy (XLE) -0.4%
Shares of chipmaker Marvell Technology (MRVL) surged 32% on Friday.
- Its earnings topped top and bottom line estimates
- The company doubled its forward-looking guidance on IA-related revenues from $200 million to $400 million
- Friday’s gains added about $14 billion in market cap
Semiconductor manufacturer Broadcom (AVGO) popped another 12% higher during Friday’s session.
- Earlier in the week, Apple (AAPL) announced “a multiyear, multibillion-dollar deal” with the company
- AVGO stock is up about 20% since the deal was announced
- The gains represent $56 added value in market cap
The Nasdaq’s two-day rally has brought it right back to extremely overbought conditions, as marked in red on the following chart…
However, the former resistance level, marked in yellow, has clearly demonstrated its ability to now act as support.
The overbought conditions are notable because the current rally is unsustainable. But the strong reaction to the support shows us the buyers are firmly in control of the market.
The daily read…
- The VIX finished the day below 18, very bullish
- RSI levels are mostly neutral, the expectation is noted above
- The Put-to-Call Ratio is neutral
Here are the earnings to watch this week…
- CrowdStrike (CRWD) reports Wednesday after hours
- Salesforce (CRM) also Wednesday PM
- C3.ai (AI^) again, Wednesday PM
- Asana (ASAN) Thursday after hours
- Chargepoint (CHPT) Thursday PM
There are only 2 trading days remaining in June.
Your June outlook will be delivered tomorrow morning.
*SDA on watch
*ALAR support at $3
*AMAM support at $14
*WTER support at $2
*VIRI support ta $1.40
ELEV support at $4
INOD support at $10
TAST support at $5.50
ZNTL support at $28
URBN support at $30
^PLAB support at $20
BTBT support at $2.50
NVTS support at $10
Secondary watchlist—float 100+ million
EVLV support at $5.50
ZUO support at $10
RIOT resistance at $12
MVIS support at $3.50, resistance at $4.25
^IONQ support at $9
VRT support at $18
^PLTR on watch