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7/12/23 Breakout Behind, Inflation Ahead

News:

Buyers continued to push prices higher on Tuesday.

The indexes all posted solid gains…

  • Dow Jones +0.9%
  • Nasdaq +0.6% 
  • S&P 500 +0.7%
  • Russell 2000 +1.0%

The Russell 2000, representing the small caps, posted the biggest gain for the 3rd day in a row.

Image from Shutterstock

Between the surge in small caps and the climbing price of ^Bitcoin, the market is showing an appetite for risk.

Sector Round Up

All 11 sectors closed Tuesday’s session in the green.

At the top…

  • Energy (XLE) +2.2%
  • Communications (XLC) +1.7%
  • Utilities (XLU) +1.2%

At the bottom…

  • Technology (XLK) +0.2%
  • Consumer Staples (XLP) +0.2%
  • Healthcare (XLV) +0.0%

Technicals: 

A few weeks ago, we drew some lines on the Russell 2000’s chart…

RUT Daily Candle – Chart by thinkorswim

After holding support twice around 1800, its three-day run has resulted in a technical breakout above 1900.

If momentum continues after the inflation reports, the other major indexes could break out to new highs too.

Here’s your latest readout…

Timing:

Today at 8:30 AM, the latest headline inflation data will drop in the form of the CPI report.

Expect volatility. Your best bet, tune out the noise and watch the market’s reaction. The reaction is more important than the news.

Lastly, never believe the first move.

Watchlist:

*Low Float
^Open Position

*GREE support at $5
*PWM support at $20
*SIEN support at $3.50
*RMTI support $6
AAOI on watch
FNGR on watch
GASS support at $4.20
^CIFR on watch
^OSTK support at $30
IREN support at $6, resistance at $7
REKR support at $2.20
KODK support at $5.50
ONCY support at $3, resistance at $3.25
UPST support at $40
REAL support at $2.50
ADVM support at $1.60, resistance at $1.80
CVNA support at $30
MRNS support at $10, resistance at $11
WULF on watch

Secondary watchlist—float 100+ million

RDFN support at $14
MARA
support at $16
CLSK support at $5 / $6
VRM on watch
CBD support at $4.25
TMC support at $2.50
MVST resistance at $2.50

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