News:
Stocks continued to climb higher during Tuesday’s session.
All the indexes closed in the green (again)…
- Dow Jones +1.1%
- Nasdaq +0.8%
- S&P 500 +0.7%
- Russell 2000 +1.0%
The biggest headline of the day came from the big banks.
Several reported earnings and were met with buying…
- Bank of America (BAC) +4.4%
- Charles Schab (SCHW) +12.6%
- Morgan Stanley (MS) +6.5%
Sector Round Up
The sectors also struck a bullish tone—8 of 11 ended the day green.
At the top…
- Technology (XLK) +1.1%
- Financials (XLF) +1.1%
- Energy (XLE) +1.0%
“Safe” stock finished at the bottom
The losers were…
- Consumer Staples (XLP) -0.1%
- Utilities (XLU) -0.8%
- Real Estate (XLRE) -0.8%
Technicals:
The market is overbought.
And now the Dow Jones has joined the overbought club as it closed at its highest level in over 52 weeks.
We reiterate…
History tells us that overbought conditions can’t be maintained.
We are avoiding new positions and looking to book profits in this rally.
A dip is coming, but we can’t say when.
Here’s your latest readout…
- The VIX is super low—bullish
- RSI levels All four indexes are now overbought—bearish
- The put-to-call ratio is neutral
Timing:
Today after the close, tech giants Netflix (^NFLX) and Tesla (^TSLA) will report earnings.
As always, watch the market’s reaction, not the headlines.
Watchlist:
*Low Float
^Open Position
*BBIG support at $2.50
*GP on watch
ICAD support at $3
ZIMV support at $12
SIFY support at $2.75
EYPT support at $11
MNMD support at $4.20
^CIFR support at $4.50
^OSTK support at $30, resistance at $32.75
HYPR on watch
UPST on watch
GDRX support at $7
QBTS support at $2.50
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 $2
ACHR support at $5
LTCH on watch
RXRX resistance at $14
MVST support at $2.50
RKLB on watch