Ahead of the long weekend on Friday, markets opened higher and climbed during the morning session.
By noon, the S&P 500 was up more than 1%.
Then the buying stopped.
Markets fell throughout the afternoon and ended the day significantly lower.
- The Nasdaq led the decline, falling 1.3%
- The Russell 2000 fell the least with a loss of 0.7%
- S&P 500 and Dow closed down 1.1% each
10 of 11 sectors ended the Friday in the red.
The volatile Energy (XLE) sector was the lone bright spot adding 1.8%.
Don’t expect energy to give the top volatility spot any time soon. Over the weekend, we got a few surprise developments…
This morning oil futures are slightly higher but still below pre-Ukraine invasion levels.
Friday’s biggest losers…
- Healthcare (XLV) -1.4%
- Real Estate (XLRE) -1.7%
- Communications (XLC) -1.9%
A Death In Meme Stocks
Gustavo Arna, the CFO of Bed Bath & Beyond (BBBY^), died in an apparent suicide on Friday.
According to reports, the 52-year-old jumped from an NYC highrise.
Shares of the stock are down 16% in premarket trading … A decline of more than 75% from its August highs.
Bitcoin^ spent much of the long weekend trading below the critical $20,000 level.
At writing, it’s at $19,945.
The crypto rut continues. But buyers are holding the price steady.
The VIX is telling a story…
Despite Friday’s selloff, the VIX actually fell. A rare feat indeed as a declining VIX typically favors the bulls.
Our other signals favor the bulls too.
- The Put-to-Call Ratio is oversold for the fifth day.
- RSI levels are oversold for all four major indexes.
We remain in wait-and-see mode. This market dip has not shaken our bullish outlook.
It’s a short week without much in the way of macroeconomic news.
There are a few earnings reports we’ll be keeping an eye on…
- NIO Inc. (NIO) reports Wednesday premarket
- GameStop (GME^) Wednesday after the close
- DocuSign (DOCU) on Thursday after the close
- Kroger (KR) on Friday premarket
*RVPH resistance at $3
COGT support at $16
VERV support at $37
AREC support at $3, resistance at $3.50
FLNC support at $18
DXLG support at $5.50
HOLI support at $18
^GEO support at $8
TCRT support at $2.80
^GERN support at $2.50
TAL support at $5.50