News:
Markets closed yesterday mixed, with slightly more stocks advancing (54%) v declining (41%).
- The Dow Jones and Russell 2000 close in the green.
- The S&P 500 and Nasdaq ended in the red.
The News was mixed too…
Producer Price Indexes (PPI) unexpectedly fell. The report revealed a 0.5% decline in prices month-over-month.
The report bolsters the case that inflation has peaked.
On the other hand, new unemployment filings remain elevated.
This is the third week in a row that initial filings have topped 250,000. The number is notable but not alarming.
Sector Roundup
The sectors were divided as well. At the top…
- Energy (XLE) rose 3.5% as the price of crude crept back up. Crude is trading near $95 per barrel this morning.
- Financials (XLF) gained more than 1% on the improving inflation outlook.
At the bottom…
- Consumer discretionary (XLY) -0.7%
- Healthcare (XLV) -0.5%
Technicals:
The S&P 500’s chart looks incredibly strong.
The only concerning signal at the moment is the overbought RSI levels.
We’re expecting a cooldown … sooner or later.
But that doesn’t mean the market will fall. Sideways is a direction too.
Futures are higher this morning as the markets look for their fourth consecutive green week.
Timing:
This morning at 10 am, the latest consumer sentiment survey from the Univ of Mich will drop.
Don’t expect any fireworks, but the report often has notable findings … We’ll let you know what we discover on Monday…
Next week is options expiration week.
- Historically the August expiration week starts strong and ends weak.
Watchlist:
*Low Float
^Open Position
*CASI resistance at $4
AEHR on watch
SUNW resistance at $4
TPIC on watch
COGT support at $12
SIGA support at $22
AERI support at $10
KOD support at $10
RYTM support at $15
TCDA support at $12
RAD support at $10
VUZI support at $9
RVNC support at $20.50
MRSN support at $6
BLU support at $11
CPRX on watch
Secondary watchlist … +100m float
STKL on watch
DVAX resistance at $17.50
ARRY on watch
BFLY on watch
ABCL support at $12
BNGO support at $3
^GERN support at $2