Markets opened just 1 hour after getting the latest Producer Price Index (PPI) report. For manufactures…
- Prices fell -0.3% month-over-month
- Year-over-year prices were up just +1.1%, well below the Fed’s target of 2%
But the real newsmaker was The Fed itself. Here’s what you need to know—straight from the Fed Chair himself…
- Due to “potential headwinds,” the “interest rate [is] unchanged”–as expected
- However, “further rate increases will be appropriate this year”
- “Inflation pressures continue to run high,” and The Fed “has a long way to go”
While markets took a dive when Powell suggested more rate hikes are ahead … The indexes ended Wednesday mixed and without any significant change to report…
- Dow Jones -0.7%
- Nasdaq +0.4%
- S&P 500 +0.1%
- Russell 2000 -1.2%
Sector Round Up
The sectors stayed tame as well. +/- 1% was as far as any sector strayed from its previous close.
4 of the 11 sectors ended Wednesday’s session higher.
At the top…
- Technology (XLK) +1.0%
- Consumer Staples (XLP) +0.6%
- Real Estate (XLRE) +0.6%
At the bottom…
- Materials (XLB) -0.4%
- Energy (XLE) -1.0%
- Healthcare (XLV) -1.0%
Short sellers were handed a signal to sell small-caps on Wednesday…
After a solid 9-day rally, the Russell 2000 hit a wall at a long-term resistance level.
Yesterday’s close completed a bearish engulfing pattern which typically means a draw-down is at hand.
Your latest readout…
- The VIX remains very low-–Bullish
- RSI levels the S&P 500 & the Nasdaq remain overbought—Bearish
- The Put-to-Call Ratio is oversold–Bullish
Due to the mixed signals and bullish long-term outlook, we have not initiated any new positions today.
We did close our long position in small-cap MVIS for a small gain.
Friday will end with the second triple witching of the year.
Beware, as contracts expire, volatility can increase.
After tomorrow’s close, the markets will kick off a 3-weekend in observance of the Juneteenth holiday on Monday.
*UTME support at $2.20, resistance at $2.40
*PPSI support at $7
*^GSIT support at $7
INOD support at $10 / $12
AAOI resistance at $4
^NA support at $2.40
AMTX support at $6
SYM support at $40 / $45
MRSN support at $9
^PLAB support at $23
UPST support at $35
^AI support at $40
CVNA support at $20
NVTS support at $9, resistance at $10
MRNS support at $10
Secondary watchlist—float 100+ million
SEEL resistance at $1.10
ACHR on watch
NEXT support at $7
^IOT on watch
GOL support at $4.50
DHC on watch
JOBY on watch
RKLB support at $5.50
SOFI on watch
^PLTR resistance at $16
CCL on watch