News:
Shares of several regional banks tumbled with PacWest Bancorp (PACW) during Thursday’s trading session.
- First Horizon (FHN) -33% (-59% since March 8)
- Metropolitan Bank (MCB) -6% (-64%)
- Western Alliance Bancorporation (WAL) -38% (-76%)
The continued uncertainty in the banking world put a drag on the markets.
All of the indexes spent the day in the red, the price action was mostly sideways. Here’s the closing change…
- Dow Jones -0.9%
- Nasdaq -0.5%
- S&P 500 -0.7%
- Russell 2000 -1.2%
Sector Round Up
There were a couple of glimmers of hope on Thursday.
2 of the 11 sectors ended the session higher.
The winners…
- Real Estate (XLRE) +0.9%
- Utilities (XLU) +0.8%
At the bottom…
- Energy (XLE) -1.1%
- Financials (XLF) -1.3%
- Communications (XLC) -1.6%
Technicals:
From 10,000 feet up, the broader trend in the market is pointing higher, as you can see in the chart representing the S&P 500 below…
The next move is unclear.
The market may have topped on May 1. It may have bottomed on Thursday, May 4.
We’re giving it another day to reveal what it wants to do … Today, a red close is bearish, and a green close is neutral.
Until then, here’s our latest reading…
- The VIX ticked above 20, but closed well off its highs
- RSI levels are neutral
- The Put-to-Call Ratio returned to neutral
Timing:
At 8:30 this morning, the April jobs report drops. We’ll get the latest unemployment rate and the number of jobs gained (or lost) last month.
Then we head into a weekend during which financial regulators may be scrambling to stop the collapse of banks.
Today we are adding 8 new names to our watchlist. Yesterday we added 9. These are bullish signs.
Watchlist:
*Low Float
^Open Position
*^MDJH support at $2.50
ELEV support at $3
BZH support at $18
QTRX on watch
SHAK support at $60
PLX on watch
GRBK on watch
COCO support at $22
AVDL on watch
PRTA support at $65
SMCI support at $120
NNOX support at $14
AQST on watch
LVO support at $1.40
SA on watch
LNTH support at $40
^TDUP support at $2.40
^CBAY support at $10
Secondary watchlist—float 100+ million
TIO support at $2.40
MDGX support at $4.50
TGTX on watch
BLDR on watch
RIOT support at $10, resistance at $12
HIMS support at $10.50, resistance at $12
LXRX support at $3
IMGN on watch
UGP support at $3
SHOP support at $55
UBER support at $36