Monday opened the big news week on a posit note.
- Dow Jones +0.6%
- Nasdaq +1.5%
- S&P 500 +0.9%
- Russell 2000 +0.4%
The S&P 500 closed at its highest level since April 2022, 14 months ago.
Sector Round Up
The sectors split—practically down the middle. 6 of 11 ended the session with gains.
It was clear the bulls had the wind at their back, with gainers far outpacing losers.
Risk-on stocks led the way…
- Technology (XLK) +2.2%
- Consumer Discretionary (XLY) +1.7%
- Communications (XLC) +1.2%
At the bottom…
- Real Estates (XLRE) -0.1%
- Utilities (XLU) -0.2%
- Energy (XLE) -1.0%
Analyst upgrades send a couple of mid-cap stocks soaring on Monday.
Online lender SoFi Technologies (SOFI) jumped 12% and closed at a 52-week high after a Truist analyst upgraded his outlook for the stock.
- The price target was updated from $8 to $11
- Monday’s gains added nearly $1 billion to SoFi’s market cap
Carnival Cruises (CCL) jumped more than 12% and also posted a 52-week high after analysts from a couple of big banks upgraded their ratings to buy.
- The analysts cited strong bookings and growing demand as reasons for the upgrades
- Buyers added about $1.7 billion to Carnival’s market cap on Monday
Buyers are motivated, but they may be coming on too strong.
The S&P 500’s gains put it in overbought territory. That’s only the 3rd time it’s reached these levels in the past year.
You can see on the chart what happened after next…
The magnitude of the subsequent drawdowns varied greatly.
We believe when the dip comes, it will be a buying opportunity. But in the short term, we expect some selling.
Your latest readout…
- The VIX is holding below 16-–Bullish
- RSI levels are overbought in the S&P 500 and Nasdaq—Bearish
- The Put-to-Call Ratio is neutral
At 8:30 this morning, the latest inflation data drops in the form of the CPI report.
Meanwhile, in Washington, DC, the FOMC meeting to decide the fate of the interest rate will convene.
We won’t hear from them until tomorrow afternoon.
*APRN resistance at $8
*UTME support at $2.20
*GSIT support at $7
AEHR support at $40
AAOI support at $3
^NA support at $2.40
AMTX support at $6
EFTR support at $1.20, resistance at $1.40
SYM support at $35 / $40
MRSN support at $8, resistance at $9
^PLAB support at $22
UPST support at $30
CGEN support at $1.25
^AI support at $35, resistance at $40
CVNA support at $20
NVTS support at $9
MRNS support at $9 / $10
Secondary watchlist—float 100+ million
^IOT on watch
^MVIS support at $6
DHC on watch
JOBY support at $6
SOFI support at $8
^PLTR support at $14, resistance at $16
CCL on watch