7/19/23 Topping Out


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. 

Image from Tip Ranks

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%


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.

DIA Daily Candles – Chart by thinkorswim

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…


Today after the close, tech giants Netflix (^NFLX) and Tesla (^TSLA) will report earnings.

As always, watch the market’s reaction, not the headlines.


*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

Leave a Comment

Your email address will not be published. Required fields are marked *