The market struck a decisively bullish tone on Monday. After a weak open, buyers pushed prices higher right up until the closing bell.
All the indexes closed in the green…
- Dow Jones +0.2%
- Nasdaq +0.9%
- S&P 500 +0.4%
- Russell 2000 +1.0%
Sector Round Up
The sectors revealed the winners and the losers.
5 of the 11 sectors ended Monday in the green.
At the top…
- Technology (XLK) +1.3%
- Financials (XLF) +1.0%
- Consumer Discretionary (XLY) +0.4%
At the bottom…
- Healthcare (XLV) -0.5%
- Real Estate (XLRE) -0.9%
- Utilities (XLU) -1.2%
Shares of AT&T (T) and Verizon (VZ) are falling.
Both gave about 7% during Monday’s session, and both are trading at multi-year lows.
While they have both been trending lower for some time, a recent Wall Street Journal article revealed that the companies have buried thousands of miles of “lead-covered cables,” which are contaminating groundwater.
- A slew of downgrades have followed
- We are steering clear—no trade
The Market is overbought.
The S&P 500 is flashing a warning signal…
History tells us that overbought conditions can’t be maintained.
We are avoiding new positions and looking to book profits in the summer rally.
A dip is coming, but we can’t say when.
Here’s your latest readout…
- The VIX is super low–bullish
- RSI levels are still overbought in the Nasdaq and S&P 500–bearish
- The put-to-call ratio is neutral
We are in a seasonally bearish time.
While our long-term outlook is bullish, we expect sideways action and maybe even a drawdown soon.
The overbought conditions coupled with the season suggest the summer peak is near—if it’s not already in.
*GREE support at $8
*BBIG resistance at $2.50
*GP support at $4
ZIMV support at $12
RVYL support at $1.40
SIFY on watch
EYPT support at $10 / $11
^CIFR support at $4.50
^OSTK support at $30, resistance at $32.75
UPST on watch
GDRX support at $7
ADVM support at $2
QSI support at $3
Secondary watchlist—float 100+ million
SEEL support at $1.40
EVLV support at $6
CAVA support at $46
RGTI support at $1.60 / $2
ACHR support at $5
LTCH on watch
RXRX resistance at $14