On Wednesday, market losses continued for a fourth day.
64% of stocks ended the day lower.
Once again, the selloff was uniform across the indexes…
- Dow Jones -0.9%
- Nasdaq -0.6%
- S&P 500 -0.8%
- Russell 2000 -0.6%
Can we still blame the Fed? Let’s try…
She also noted that her forecast didn’t “have a recession” included.
- The current rate is 2.25-2.50%.
So take or leave it, she gets one vote at the next FOMC meeting.
10 of 11 sectors closed red.
The Communications (XLC) sector was the lone green spot with a gain of 0.2%, led by Meta Platforms (META).
- META added 3.7%
- Investors cheered a report claiming to have an internal memo from the company.
- The report suggested that “paid features” could be added across the company’s most popular platforms, Facebook, Instagram, and WhatsApp.
On the losing end…
- Technology (XLK) -1.0%
- Consumer Discretionary (XLY) -1.0%
- Energy (XLE) -0.9%
A notable loser from the technology sector was personal computer maker HP Inc (HPQ).
- HPQ fell 7.7% after its earnings call.
- The company met analyst expectations for Q2.
- But lower guidance for Q3.
- Its CEO, Enrique Lores, said the economic slowdown was “bigger than expected.”
At writing, Bitcoin^ is trading below $20,000.
Crypto is once again showing it’s not immune from widespread fear in financial markets.
We have been adding to our position throughout the downturn.
The Dow Jones entered oversold RSI conditions as of yesterday’s close.
The rest of the indexes are getting close.
We see the potential for a classic head-and-shoulders reversal pattern in the coming weeks.
We have set our suggested buy zone accordingly…
Other signals are mixed as futures are pointing towards more losses this morning.
It’s the first day of September.
We’ll get the latest initial unemployment filings today at 8:30.
Tomorrow the latest unemployment rate drops at 8:30.
Then the markets will close for a long weekend, thanks to Labor Day.
*NERV is on watch
COGT support at $16
VERV support at $37
AREC support at $3
FLNC support at $19
DXLG support at $5.50
DNOW support at $12
^GEO support at $8
TCRT support at $2
^GERN support at $2.50
TAL support at $5.50
GSAT support at $1.80