News:
Markets ended May on a red note.
The indexes all ended Wednesday’s session lower.
- Dow Jones -0.4%
- Nasdaq -0.6%
- S&P 500 -0.6%
- Russell 2000 -1.0%
Headlines blamed the debt ceiling.
Overnight, the House passed a bill that will suspend the debt ceiling crisis for another two years.
The fabricated brinkmanship is over … for now.
At writing, futures are marginally higher. Had the market indeed been concerned, the reaction would likely be much stronger.
Sector Round Up
Despite the weakness in the indexes, the bears failed to dominate. 4 of the 11 sectors ended Wednesday’s session in the green.
At the top…
- Utilities (XLU) +0.9%
- Healthcare (XLV) +0.9%
- Real Estate (XLRE) +0.6%
At the bottom…
- Materials (XLB) -1.1%
- Industrials (XLI) -1.4%
- Energy (XLE) -1.8%
Notable Names
Shares of Advance Auto Parts (AAP) plunged 35% on disappointing earnings and a slashed dividend.
- The selloff send shares to their lowest level in more than 10 years
- The dividend paid in Q2 was $1.50 per share—the Q3 dividend will be just $0.25
- AAP stock lost more than $2.3 billion in market cap on Wednesday
Pet supply retailer Chewy (CHWY) is more than 16% higher this morning.
- The company’s latest earnings topped estimates
- Recurring purchases were credited with much of the revenue
- If the gains hold, the company will add more than $2 billion in market cap
Technicals:
It’s hard to say anything truly bearish about the market after looking at this chart, representing the S&P 500…
$410 was the level to watch a short while ago. It hasn’t been in question so far this week.
The daily read out…
- The VIX ended Wednesday below 18
- RSI levels are mostly neutral, the Nasdaq remains overbought
- The Put-to-Call Ratio is oversold
Our outlook remains bullish…
Although, some weakness is not unlikely in the next couple of weeks.
Timing:
It’s the first day of June, and the market is shifting to a historically weaker time of year.
We remain cautious buyers for the right theme.
Watchlist:
*Low Float
^Open Position
*SDA on watch
*AMAM support at $14
*WLDS support at $1, resistance at $2
*VIRI support ta $1.40
ELEV support at $4
INOD support at $10
URBN support at $30, resistance at $32
^PLAB support at $20
BTBT is on watch
KOPN support at $1.80
^AI support at $35
NVTS support at $8
Secondary watchlist—float 100+ million
EVLV support at $5.50, resistance at $6
ZUO support at $10, resistance at $11
RIOT resistance at $12
^MVIS support at $4
^IONQ support at $10, resistance at $11
VRT support at $18
^PLTR on watch