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7/11/23 Small Cap Love

News:

Monday’s trading session belonged decisively to the bulls.

Image from Wikipedia

The indexes all posted gains, with the Russell 2000, representing the small caps, leading the way once again.

  • Dow Jones +0.6%
  • Nasdaq +0.2% 
  • S&P 500 +0.2%
  • Russell 2000 +1.6%

Sector Round Up

The sectors we’re bullish too. There were a few weak spots as 7 of the 11 sectors closed green.

The magnitude of the winners far outpaced the losers.

At the top…

  • Industrials (XLI) +1.4%
  • Healthcare (XLV) +0.8%
  • Energy (XLE) +0.8%

At the bottom…

  • Communications (XLC) -0.3%
  • Utilities (XLU) -0.4%

Technicals: 

The S&P 500 is rangebound. Its small moves make it unlikely to break out or break down in the near future…

SPY Daily Candle – Chart by thinkorswim

That is, as long as the market doesn’t have anything new to price in.

Here’s your latest readout…

Timing:

We’re getting deeper into summer trading, and the July peak may already be in.

Bulls tend to rest in the summer…

And while we have no reason to believe the markets are headed lower—the technicals and timing are showing us no indication that markets are ready to move significantly higher either.

Our outlook is neutral.

Watchlist:

Many of Monday’s biggest winners came straight from this list…

*Low Float
^Open Position

*GREE on watch
*PWM on watch
*SIEN support at $3.50
*RMTI support $6
AAOI support at $7
GASS support at $4.20
^CIFR on watch
^OSTK support at $27, resistance at $30
IREN support at $6
REKR support at $2.20
KODK support at $5.50
ONCY support at $3, resistance at $3.25
UPST support at $40
ADVM support at $1.60
CVNA support at $30
MRNS support at $10, resistance at $11
WULF on watch

Secondary watchlist—float 100+ million

MARA support at $16
CLSK support at $5
VRM support at $1.65
CBD support at $4.25
TMC on watch

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