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8/28/23 Guided by the Stars on a Cloudy Night

News:

If the market was looking for assurances from Fed Chair Powell on Friday, it would have been left disappointed.

Powell himself admitted The Fed was in the dark, saying, “We are navigating by the stars under cloudy skies.”

Image from Barron’s

He left a sense of caution in the air, and the markets took it as a dovish cu.

After a choppy session, the indexes all closed the day green…

  • Dow Jones +0.7%
  • Nasdaq +0.9% 
  • S&P 500 +0.7%
  • Russell 2000 +0.4%

Sector Round Up

The rally was tame but widespread. All 11 sectors ended Friday’s session higher.

At the top…

  • Consumer Discretionary (XLY) +1.1%
  • Technology (XLK) +1.0%
  • Energy (XLE) +1.0%

Bringing up the rear…

  • Materials (XLB) +0.3%
  • Real Estate (XLRE) +0.3%
  • Communications (XLC) +0.1%

Technicals: 

The S&P 500 is showing signs of a local bottom forming…

SPY Daily Candles – Chart by thinkorswim

After retreating from oversold conditions and digesting the latest Fed speak … markets are poised to move higher … if the timing allows it.

Your latest readout…

Timing:

There are several scheduled news drops to pay attention to this week…

  • PCE inflation report on Thursday, August 31st
  • The latest jobs report on Friday, September 1st

Earnings season is fading. But there are a couple of notable names reporting this week too…

  • Crowdstrike (CRWD) Wednesday after-hours
  • Salesforce (CRM) Wednesday after-hours

Watchlist:

*Low Float
^Open Position

*HKIT support at $28
*GCT support at $12
*HOLO support at $6
*TSAT support at $18
GRPN support at $12
PFIE support at $2, resistance at $2.40
ACMR support at $15
ESTE support at $19

Secondary watchlist—float 100+ million

MREO resistance at $1.40
PGEN resistance at $1.75
VFS
support at $35

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