News:
On the surface, markets looked upbeat as the FOMC meeting convened in Washington.
At the end of Tuesday’s session, all of the major indexes were green…
- Dow Jones +0.1%
- Nasdaq +0.6%
- S&P 500 +0.3%
- Russell 2000 +0.0%
A look beneath the surface told a different story.
About 48% of stock advanced, while 48% declined. It was clear the bulls weren’t dominating.
Sector Round Up
The sectors reflected what we saw in individual stocks. 5 of 11 sectors ended Tuesday’s session in positive territory.
At the top…
- Materials (XLB) +1.8%
- Technology (XLK) +1.1%
- Energy (XLE) +0.5%
At the bottom…
- Consumer Discretionary (XLY) -0.2%
- Financials (XLF) -0.7%
- Real Estate (XLRE) -0.7%
Technicals:
The S&P 500, the best measure of the broader stock market, is at 52-week highs…
Its chart is clearly pointing higher.
But a clear case for the bulls can’t be made.
- Markets are overbought, according to the current RSI levels
- And seasonally, its a weak time of year
Markets tend to bottom and peak on news. And today is a big news day.
Your latest readout…
- The VIX is holding near 3-year lows
- The put-to-call ratio is neutral
Timing:
At 2 PM, the markets will jolt in reaction to the Fed’s interest rate decision.
At 2:30, Fed Chair Powell takes the stage to deliver prepared remarks and answer poorly prepared questions from reporters.
Hike or hold—we’re expecting markets to end the day lower.
But hey, anything could happen.
Watchlist:
*Low Float
^Open Position
*BBIG on watch
EYPT support at $10
KNSA on watch
MNMD support at $4.20
^OSTK support at $30, resistance at $32.75
APLD support at $10
WW support at $9
QSI support at $3
Secondary watchlist—float 100+ million
HLLY support at $6
CAVA support at $48
RXRX support at $14
MKFG on watch
RKLB support at $7