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6/12/23 Could Calm Give Way to Chaos?

News:

Markets ended last week with a mixed day.

The indexes finished the day mostly higher, but there was a holdout…

  • Dow Jones +0.1%
  • Nasdaq +0.2% 
  • S&P 500 +0.1%
  • Russell 2000 -0.8% ←

Beneath the surface, there wasn’t a case we could make for the bulls. Of the 8,200+ listed stock, only 33% advanced, while 63% declined.

Sector Round Up

The sectors split—practically down the middle. 5 of 11 ended Friday with gains.

No sector’s closing price was more than 1% away from the previous.

At the top…

  • Consumer Discretionary (XLY) +0.5%
  • Technology (XLK) +0.5%
  • Healthcare (XLV) +0.3

At the bottom…

  • Energy (XLE) -0.6%
  • Utilities (XLU) -0.6%
  • Materials (XLB) -0.8%

Technicals: 

The VIX is at a 3-year low. Let’s zoom out and look at this historical level on the 20-year chart.

VIX Monthly Candles – Chart by BarChart

Bear markets are circled in red.

The VIX is telling us the bear market is over. The question now becomes, how long will this bull market last?

With the VIX returning to sub-16 levels, the odds of a years-long bull market are increasing.

Your latest readout…

Timing:

The week ahead promises excitement.

Here are the top newsmakers we’ll be watching this week…

  • Tuesday morning, CPI inflation data drops
  • Wednesday morning, we’ll get the PPI inflation data
  • Finally, Wednesday afternoon, The Fed will announce its latest move regarding interest rates

We’ll be watching the market’s reaction to each of these news items and will brief each morning with the latest.

Let’s have a great week.

Watchlist:

*Low Float
^Open Position

*APRN on watch
*UTME support at $2.20
*WLDS support at $2
*GSIT support at $7
AEHR support at $40
AAOI support at $3
^NA support at $2.40
EFTR support at $1.20, resistance at $1.40
CRVS support at $3.50
SYM on watch
MRNS support at $9
^PLAB support at $22
UPST support at $30
EXPI support at $18
CGEN support at $1.20
^AI support at $35
NVTS support at $9
MRSN support at $9 / $10

Secondary watchlist—float 100+ million

^IOT on watch
^MVIS support at $6
DHC on watch
AUR support at $2
JOBY support at $6
^PLTR support at $14, resistance at $16

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