Markets lurched higher on Wednesday as oversold conditions were alleviated.
The indexes ended the day with solid gains…
- Dow Jones +0.5%
- Nasdaq +1.6%
- S&P 500 +1.1%
- Russell 2000 +1.0%
Sector Round Up
Bulls had a very strong showing across the board … 10 of the 11 sectors closed higher.
At the top…
- Technology (XLK) +1.8%
- Communications (XLC) +1.6%
- Real Estate (XLRE) +1.5%
- Energy (XLE) -0.3.%
The latest trillion-dollar company, Nvidia (NVDA), gained during Wednesday’s session. The company reported earnings after the close and has since surged to all-time highs.
- AI is driving higher earnings and growing guidance
- At writing, the stock is up more than 10% from Tuesday’s close
- If the gains hold will add over $120 billion in market cap in 48 hours
Clothing retailer and mall staple Abercrombie & Fitch (ANF) gained about 24% after reporting blowout earnings pre-market yesterday. The stock closed at all-time highs.
- The gains come as other retailers tumble
- The CEO said the company has “gone through every single function” to transform the company into a leader
- The gains added $480 million in market cap
When the VIX is under 16, the bulls have a green light to push prices higher.
This morning it has recaptured that level. We’ll watch the day’s price action and see if it can hold.
Your latest readout…
While the technicals are pointing higher, the season gives us pause.
We are expecting another drawdown closer to the first day of fall. For now are not buying or selling.
*RETO support at $6
*HKIT on watch
*GCT support at $12
*HOLO on watch
*TSAT on watch
*GAMB support at $13 / $14
*GROV support at $3
GRPN support at $10, resistance at $12
AAOI support at $14, resistance at $16
PFIE support at $2
ACMR support at $15
ESTE on watch
Secondary watchlist—float 100+ million
MREO resistance at $1.40
ACHR support at $7
VFS support at $35