After posting a single day of gains and relieving much of the oversold conditions on Monday, markets reversed course hard on Tuesday.
Markets gapped down and fell throughout the day.
Buyers didn’t show up for the broader market, and the indexes closed deep in the red…
- Dow Jones -1.1%
- Nasdaq -1.6%
- S&P 500 -1.5%
- Russell 2000 -1.3%
Headlines continue to blame rate hike fears.
Sector Round Up
All of the 11 sectors closed Tuesday lower.
Falling the least…
- Energy (XLE) -0.6%
- Consumer Staples (XLP) -0.7%
- Healthcare (XLV) -0.9%
At the bottom…
- Technology (XLK) -1.8%
- Consumer Discretioary (XLY) -1.8%
- Utilities (XLU) -3.0%
Too Big Not to Sue
The FTC and 17 state AGs announced a new lawsuit against Amazon (AMZN) on Tuesday.
- Officials accused the company of running an “illegal” “monopoly”
- Amazon said the FTC has a “misunderstanding of retail”
- AMZN Stock fell 4%
The multi-day selloff has not induced the type of fear we’d typically associate with bear markets.
The VIX, which typically spikes when markets fall, has yet to gain any momentum. This morning, it remains below 20.
The last time we breached 20 was in the fallout of the 2023 banking crisis.
Your latest readout…
Our outlook remains unchanged.
We believe further downside is limited. We’re buying the dip.
Weakness in the stock market is expected this time of year.
So are turning points…
History shows more market bottoms in October than in any other month. The market may be running ahead of schedule this year.
Plus, our watchlist is growing. That’s bullish…
*SLNO on watch
*SHOT support at $1.40, resistance at $1.55
*HRTG support at $6
*ACIC support at $8, resistance at $9
*GLBS on watch
LFMD support at $5
GIII support at $24
IMVT on watch
APLT support at $2, resistance at $2.80
WSM support at $145
NN support at $5 / resistance at $5.50
TNGX on watch
SCS support at $10.50
Secondary watchlist—float 100+ million
TALK support at $1.80
ROIV support at $12