On Friday, the markets snapped a four-week win streak.
- The S&P 500 fell 1.3%, putting it down 1.2% for the week.
- Dow Jones -0.9% (-0.2% week)
- Nasdaq -2.0% (-2.6% week)
- Russell 2000 -2.2% (-3.0% week)
Under the surface, it was tough to find a bright spot. 82% of all listed stocks fell while just 14% advanced.
Healthcare (XLV), with a gain of 0.3%, was the only sector to end the day in positive territory.
Financials (XLF) and Consumer Discretionary (XLY) were Friday’s biggest losers, falling about 2% each.
Meme stock Bed Bath & Beyond (BBBY^) crashed another 40% on Friday. This morning it’s holding support near $10.
- It’s down about 66% from last week’s highs.
- But still up more than 100% from last month’s lows.
- We maintain a small position after taking some profits into last week’s spike.
AMC Entertainment (AMC^) is following suit … It’s down 33% in premarket trading.
Axsome Therapeutics (AXSM) rose 40% on Friday and is green again in premarket trading.
- The drug maker received FDA approval for an antidepressant designed for adults 60 years old and up.
This morning the markets are pointing to a red open … at support.
We believe there is a strong chance that buyers will begin pushing back near the level marked on the SPY chart below.
Watch for heavy selling intraday. A big dip is a buying opportunity.
But we don’t recommend holding if markets close near their lows.
The signals we’re tracking…
- RSI levels are back in neutral territory after Friday’s sell-off.
- The VIX is higher but remains generally bullish
- The put-to-call ratio indicates oversold
- Earning season continues … You can find all the most notable calls of the week listed here.
- On Thursday, Tesla (TSLA^) is scheduled to complete its 3-to-1 stock split.
- Also, on Thursday, the final Q2 GDP number will be released.
- Expect the market to hang on every word as he provides hints as to the Fed’s next move with interest rates.
- Always remember … the market loves Powell.
*FPAYresistance at $3
AKLI (Formerly DNAA) is on watch
BCAB support at $9
AXSM is on watch
COGT support at $15
SIGA support at $22
RYTM support at $23
CSIQ support at $42
INFI support at $1.20
CPRX support at $13.50
^GEO support at $7.50