Buyers refused to back down during Wednesday’s session.
All the indexes closed in the green (again!)…
- Dow Jones +0.3%
- Nasdaq +0.0%
- S&P 500 +0.2%
- Russell 2000 +0.5%
Image from John Hancock Investments
The day’s gains were made pre-market.
None of the intraday gains were held.
Markets closed basically where they opened—A sign that momentum is beginning to stall.
Sector Round Up
The sectors stayed generally bullish—8 of 11 ended the day green.
Tuesday losers were at the top on Wednesday…
- Real Estate (XLRE) +1.1%
- Utilities (XLU) +1.0%
- Consumer Staples (XLP) +1.0%
The losers were…
- Industrials (XLI) -0.1
- Technology (XLK) -0.3%
- Materials (XLB) -0.5%
Quantum is Hot
Stocks in the Quantum Computing industry have been catching fire.
Momentum has carried over from the AI hype in the first half of the year, and investors are pouring money into stocks related to quantum computing.
Some names are up more than 500% on the year. Many are on or have been featured on our watchlist.
A list of tickers to consider, in no particular order…
The market looks very toppy
The chart for the Dow Jones is the most dramatic. With a long upper shadow on Wednesday’s candle, we can clearly see that the buyer’s push higher was rejected.
Add in the overbought conditions we’re seeing in the RSI levels, and the consensus says the top is in.
We are avoiding short positions because there are no signs of a selloff.
The most likely movement is sideways.
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
This morning at 8:30, the latest unemployment filings data will drop. Not expecting fireworks, but it’s always worth noting the number and the market’s reaction.
Friday is the first options expiration of Q2. The Dow has fallen during 15 of the last 22 July expirations.
- In 2002 and 2010, the losses were dramatic, -4.6% and -2.5%, respectively.
*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
VRM support at $2.50
RXRX support at $14
MVST support at $2.50
RKLB on watch