9/22/23 Falling into Friday


Markets spent another day in the red on Thursday. The selling has accelerated since the latest Fed decision dropped.

The indexes plunged and settled at their session lows…

  • Dow Jones -1.1%
  • Nasdaq -1.8% 
  • S&P 500 -1.6%
  • Russell 2000 -1.6%
Image from Forbes

10-year notes reached their highest levels since 2007 at 4.5% on Thursday. Higher long-term rates are thought to compete with stocks.

  • If you can make guaranteed money, why risk losses in stocks?
  • Investors appear to be rebalancing

Sector Round Up

All of the 11 sectors posted losses on Thursday.

Falling the least…

  • Healthcare (XLV) -0.9%
  • Utilities (XLU) -1.1%
  • Communications (XLC) -1.2%

At the bottom…

  • Materials (XLB) -2.0%
  • Consumer Discretioary (XLY) -2.7%
  • Real Estate (XLRE) -3.5%

Investors expect the higher interest rates to quell demand for real estate. The average 30-year mortgage rate is 7.42%


The S&P 500 has reached oversold conditions… 

SPY Daily Candles – Chart by thinkorswim

It’s also reached a short-term support level.

We know oversold conditions are unsustainable. We also know buyers like to buy at support.

This morning, futures are higher. We’re watching for signs of a turn. 

Our take–The current selloff is likely to set up the last great buying opportunity of 2023.

Your latest readout…


After today’s session, there is just one full week of trading left in September.

Here’s what we’re looking forward to next week:

  • The final Q2 GDP estimate drops Thursday morning 
  • PCE inflation report is scheduled for Friday


*Low Float
^Open Position

*SHOT support at $1.40, resistance at $1.55
CABA support at $16
GIII support at $24
APLT support at $2
NN support at $5
TNGX support at $8.50 / $9
SCS support at $9

Secondary watchlist—float 100+ million

TALK support at $1.80

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