News:
Markets kicked off the final week of July trading with buying.
All of the major indexes posted gains on Monday…
- Dow Jones +0.5%
- Nasdaq +0.2%
- S&P 500 +0.4%
- Russell 2000 +0.3%
For the Dow Jones, it was its 12th consecutive win.
Sector Round Up
9 of the 11 sectors ended Monday’s session in positive territory.
At the top…
- Energy (XLE) +1.6%
- Financials (XLF) +1.0%
- Real Estate (XLRE) +1.0%
The losers…
- Healthcare (XLV) -0.2%
- Utilities (XLU) -0.3%
Technicals:
The Dow Jones is now in extremely overbought territory.
But unlike the risk-on indexes, for the Dow, overbought conditions are not always met with a selloff.
As you can see on the chart above, more often than not, price action trends sideways after reaching overbought.
Historically, the dips that follow are buying opportunities.
Your latest readout…
- The VIX is holding near 3-year lows
- RSI levels The Dow & S&P 500 are overbought
- The put-to-call ratio is neutral
Timing:
RSI levels indicate the summer rally is likely about to end.
Summer rallies traditionally peak in July, and the ensuing fade typically bottoms in October.
Right now, we’re on track to maintain historical norms…
That is, assuming nothing else changes … And The Fed is meeting today to discuss rocking the market.
Tomorrow we’ll learn what they decide.
Watchlist:
*Low Float
^Open Position
*BBIG on watch
EYPT support at $10
MNMD support at $4.20
^OSTK support at $30, resistance at $32.75
ADVM support at $2
QSI support at $3
Secondary watchlist—float 100+ million
SEEL support at $1.40
HLLY support at $6
CAVA support at $48
AMRX support at $3.25
RXRX support at $14
MKFG support at $1.50
RKLB support at $7