News:
Markets faded on Tuesday. Though we struggle to call it a selloff.
“Sideways” is the word of choice, given the broader picture.
The indexes closed the day mixed, with a bearish tilt…
- Dow Jones -0.1%
- Nasdaq -1.0%
- S&P 500 -0.6%
- Russell 2000 +0.0%
Under the surface, it was clear the bulls were still alive. 41% of stock finished higher, 54% declined.
One sector stood out from the rest…
Sector Round Up
The sectors reflected the indexes. Just 3 of the 11 ended the day with gains.
The winners…
- Energy (XLE) +2.4%
- Financials (XLF) +0.7%
- Utilities (XLU) +0.1%
The risk-on sector banded together at the bottom…
- Consumer Discretionary (XLY) -0.9%
- Communications (XLC) -1.0%
- Technology (XLK) -1.8%
Technicals:
Energy prices are climbing.
On Tuesday, the ETF tracking the Energy Sector, XLE, closed at its second-highest level of 2023…
Energy prices are known to be volatile. And the increasing prices, while bullish for energy companies, can hurt the broader economy and drive inflation higher.
We’re watching for signs of a reversal or confirmation of a breakout.
It’s worth noting—the price of crude oil is at its highest level of 2023 this morning.
Your latest readout…
- The VIX is near 3-year lows
- RSI levels are all neutral
- The put-to-call ratio returned to neutral
Timing:
Headline inflation data drops at 8:30 this morning.
We’ll be watching the market’s reaction. Remember, never trust the first move.
Watchlist:
*Low Float
^Open Position
UP on watch
FNGR support at $7
PFIE support at $3
GIII support at $24
AXLA support at $1
REKR support at $3.50, resistance at $4
ESTE support at $20
NN support at $4.50
MAPS support at $1.50
TNGX support at $8
TIGR support at $5, resistance at $5.50
Secondary watchlist—float 100+ million
^IOT support at $30
^IONQ resistance at $20
SNDL support at $2