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8/16/23 New Inflation, Chinese Surprise

News:

Markets fell on Tuesday. Investors digested several new data points…

  • Retail sales in the U.S. are up +3.2% year over year
  • That figure triggered new inflation concerns, sending bond yields soaring
From Getty Images
  • China’s economy is slowing
  • The central bank unexpectedly cut interest rates

Both news items weighed down the market. 

The indexes all closed the day deep in the red…

  • Dow Jones -1.0%
  • Nasdaq -1.1% 
  • S&P 500 -1.2%
  • Russell 2000 -1.3%

Sector Round Up

The bears owned the day on Tuesday. All 11 sectors finished the day in the red.

The top performers…

  • Healthcare (XLV) -0.4%
  • Communications (XLC) -0.9%
  • Technology (XLK) -1.0%

At the bottom…

  • Materials (XLB) -1.6%
  • Financials (XLF) -1.8%
  • Energy (XLE) -2.1%

Technicals: 

The S&P 500 breached a pair of support levels during Tuesday’s session…

SPY Daily Candles – Chart by thinkorswim

The local support level, marked in yellow, and the 50-day moving average, the purple line, failed to provide any substantial buying.

Still, the market could be at a turning point. We’ll be monitoring today’s price action for signs of a turn.

Your latest readout…

Timing:

Today we’ll get some clues about The Fed’s next move as the minutes from its most recent FOMC meeting are scheduled to be released at 2:00 PM.

Watchlist:

*Low Float
^Open Position

*RETO support at $3.50
*TSAT on watch
*JUPW has support at $1 / 1.20
GROV support at $2.50
*ACIS (formerly UIHC) support at $7
ETON support at $4
GRPN support at $10
EYPT support at $14
AAOI support at $14
EH support at $20, resistance at $23
EZGO support at $2.40
TDUP support at $4
LAB support at $2.60
TDS support at $17.25

Secondary watchlist—float 100+ million

HLLY support at $7
EVLV support at $7

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