6/22/23 Fed Chair Cools The Rally


Markets posted a third day of losses on Wednesday

This time as Fed Chair Powell reiterated the Fed’s stance to Congress that additional rate hikes may be needed this year.

The indexes posted modest declines, again…

  • Dow Jones -0.3%
  • Nasdaq -1.2% 
  • S&P 500 -0.5%
  • Russell 2000 -0.2% 
Image from Alamy

Though it was hard to call the day a victory for the bears

Sector Round Up

6 of the 11 sectors ended Wednesday higher.

At the top…

  • Utilities (XLU) +0.8%
  • Energy (XLE) +0.8%
  • Industrial (XLI) +0.6%

Risk-on sectors rounded out the bottom…

  • Communications (XLC) -1.0%
  • Consumer Discretionary (XLY) -1.2%
  • Technology (XLK) -1.5%


The VIX fell during Wednesday’s session and reached its lowest level since February 2020…

VIX Daily Candles – Chart by Yahoo! Finance

The last time the VIX was below 14 was before the COVID crash and during a 10-year bull market.

Three days of losses are simply helping the market balance out. There is no fear or panic. We are reiterating our bullish stance.

Your latest readout…

  • RSI levels have all returned to neutral
  • The Put-to-Call Ratio settled neutral after lurching to extremely oversold conditions at the open


Just seven trading days remain in June.

After next week the market will have a shortened week around Independence Day.

Stay tuned … Next week, you’ll receive your complete July guide.


*Low Float
^Open Position

*GRNQ support at $2.20
*PPSI support at $8
*^GSIT support at $7, resistance at $8
INOD support at $12
GASS support at $3.60
^CIFR resistance at $3
^PLAB support at $24
OSG support at $4
HEPS support at $1.40
BTBT support at $3.50
PDCO support at $31
^AI support at $40
MRNS support at $10

Secondary watchlist—float 100+ million

KTOS support at $14.50
support at $8
GOL support at $4.50
RKLB support at $5.50, resistance at $6

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