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Daily Market Update for 3/5Trend lines drawn from the 2/16 ATH (14d), 3/1 (5d) and today 3/5 (1d).   Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, March 5, 2021 Facts: +1.55%, Volume lower, Closing range: 96%, Body: 11% Good: Morning selling turned into afternoon buying, high closing range Bad: Shrinking volume into afternoon, lower high, lower low Highs/Lows: Lower high, lower low Candle: The long lower wick shows the morning selling was bought back for a rally into afternoon Advance/Decline: About three advancing stocks for every two declining stocks Indexes: SPX (+1.95%), DJI (+1.85%), RUT (+2.11%), VIX (-13.69%) Sectors: Energy (XLE +3.74%) and Industrials (XLI +2.37%) were the top sectors. Real Estate (XLRE +1.15%) and Consumer Discretionary (XLY +0.64%) were bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview The week ended with some positive market gains to take into the weekend. It's a start, but there are still several tests for the indexes to pass and prove investors are here to stay and rally next week. The Nasdaq closed the day with a +1.55% on slightly lower volume than the previous day, but higher than average. The closing range was a high 96% with a thin body of 11% that rests above a very long lower wick. There were three advancing stocks for every two declining stocks. The major indexes all did well with the S&P 500 (SPX) gaining +1.95% and the Dow Jones Industrial average (DJI) gaining +1.85%. The Russell 2000 (RUT) had the best day with a +2.11% as small caps recovered from yesterday's sell-off. The VIX volatility index retreated -13.69%. All sectors ended the day with gains. Energy (XLE +3.74%) and Industrials (XLI +2.37%) led the sectors with the biggest gains, driven by a positive outlook for the economic recovery as job numbers came in higher than expected. At the bottom of the list were Real Estate (XLRE +1.15%) and Consumer Discretionary (XLY +0.64%). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators The US Dollar (DXY) continues to advance with a +0.38% gain today. Yields on the US 30y and 10y treasury bonds remained about the same. The 2y yields declined for the day as short term bonds continue to trade with high volatility. High Yield Corporate Bonds (HYG) prices rose while Investment Grade Corporate Bond (LQD) prices dropped slightly. Silver (SILVER) declined while Gold (GOLD) advanced, both making small moves. Crude Oil (CRUDEOIL1!) futures made another big advance. Timber (WOOD) advanced. Copper (COPPER1!) and Aluminum (ALI1!) both advanced. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.816, remaining high compared to the past few months of overly bullish sentiment. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. As it approaches 0.60 (overly bullish) and below, watch for a possible pullback in the market. The CNN Fear & Greed index is neutral. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders All four big mega-caps advanced for the day. Alphabet (GOOGL) had the biggest move with a +3.10%, not needing to content with resistance at moving average lines. Microsoft (MSFT) moved back above its 50d MA with a +2.15% gain. Apple (AAPL) and Amazon (AMZN) also had gains, but are still trading well below their 21d EMA and 50d MA lines. Most mega-caps gained for the day, with Oracle (ORCL), Taiwan Semiconductor (TSM), Chevron (CVX) and Intel (INTC) leading the list with greater than 4% gains. Tesla (TSLA) did not find its way back into positive territory after the morning selling, closing the day with a -3.78% loss. Growth stocks were mixed. Paycom software gained +7.70%, likely benefiting from the strong employment data. FUTU Holdings (FUTU) and Dr Horton (DHI) also had big days with over 5% gains. Not all growth stocks recovered from the morning selling. Digital Turbine (APPS) closed with a -6.12% loss after dipping more than 16% in the morning. It was a similar story for CrowdStrike (CRWD), Chewy (CHWY) and MongoDB (MDB). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead There is not much scheduled economic news to kick-off the week on Monday. We might have an update on the stimulus bill over the weekend that could impact markets. Earnings reports on Monday will include Livongo (LVGO), Niu Tech (NIU), Gohealth (GOCO). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support and Resistance If today's afternoon rally continues into Monday, the one-day trend line points to a +3.05% gain on Monday that would take the index back to just below the 50d MA. The trend-line from the 2/16 ATH is pointing to a -1.10% decline for Monday. The five-day trend line points to a -3.98% loss. The index dipped below the 12,550 support area today before rallying and falling short of 13,000. We could count 12,400 as support which is where the index dipped to today. This week, we've been keeping an eye on a head and shoulders pattern. This pattern represents an attempt to move back to new highs that was rejected at a previous resistance point. Typically the height of the head is measured to determine the potential move downward that will occur as the price breaks below the neck line. The index is still below the neck line, so the pattern is still worth watching. I've also been cautioning that the drop would not happen in a straight line. Today's bounce back from the intraday low could be a temporary one. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking Deeper at the Rebound I want to take a deeper look at today's rally from the morning dip. The timing didn't make much sense as I couldn't find any discernable catalyst to reverse the morning selling. The reverse happened around 11:30, two hours after the positive employment data hit the market. The reversal was also at a very odd round 12,400 for the Nasdaq. The below chart is the intraday 15m chart and the thing that sticks out is the contrast of volume in the morning selling vs the volume as investors came in to buy the dip. This would indicate that larger institutions were distributing in the morning, but a smaller number of investors were accumulating in the afternoon. In fact, the Volume Weighted Average Price for the day did not regain positive territory. The response is to not get overly optimistic about the afternoon rally. Keep a cautious eye on what's happening below the surface. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It's always nice to see a positive gain in the market. But there are still several tests that I'd like to see the index pass before getting more optimistic about a continued rally. First, I want to see higher volume during accumulation than I see during distribution. Second, the index needs to climb back above the 21d EMA to show its moving toward higher prices. Finally, I'd like the see the index make a higher weekly high and a higher weekly low to show a solid uptrend. Based on the daily chart, I'll set an expectation for sideways or higher on Monday. I think there is reason for caution here, but also don't want to be overly bearish or overly bullish and miss what's going on. I'll include this quote again from @MichaelGLamothe on twitter as its a good reminder to me: "I think it’s good to have a thesis about which way the market is going to move. The problem comes when we become too attached to it and want to be proven right. There’s tons of great reasons why the market will collapse & why it’ll blast off. Be open/ready for anything." Keep watching how stocks in your watchlist are performing compared to the movements in the market. The ones that have good relative strength are likely to be the ones to rally the most once the market resumes an uptrend. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
4
Daily Market Update for 3/4Trend lines drawn from the 2/16 ATH (13d), 2/26 (5d) and today 3/4 (1d).   Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, March 4, 2021 Facts: -2.11%, Volume higher, Closing range: 33%, Body: 45% Good: Support at 12,550 area Bad: Rejected at 13,000, new low for year Highs/Lows: Lower high, lower low Candle: Red body in center of candle with upper and lower wicks from choppy session Advance/Decline: Over seven declining stocks for every advancing stock Indexes: SPX (-1.34%), DJI (-1.11%), RUT (-2.76%), VIX (+7.12%) Sectors: Energy (XLE +2.39%) was the only sector with gains. Consumer Discretionary (XLY -2.12%) and Technology (XLK -2.21%) were bottom. Expectation: Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview The sky is not falling. But the market is! It can be confusing to see the news of reopening of economies around the US and world, positive signs of economic recovery, and yet to have the market be correcting at the same time. Thursday continued the market slide, caused by investor's fears that the economy will recover too fast and inflation will take off beyond the desired 2% that the fed targets, impacting negatively the valuations of mega-caps and growth stocks. The Nasdaq closed down another -2.11% on much more volume than the previous two sessions. The closing range was a little better at 33%, but still not great. The 45% red body sits in the middle of the candle with an upper wick created by a morning rally to 13,000 and a lower wick created by the afternoon dip to 12,550. The support at 12,550 was expected, but may be temporary. There were over seven declining stocks for every advancing stock. The Russell 2000 (RUT) had the worst day as small cap stocks were sold off heavily. Relative to the other indexes, the small caps had not been impacted as much until today. The reckoning came as investors looked for more places to reduce exposure. The S&P 500 (SPX) and Dow Jones Industrial average (DJI) also ended the day with declines as almost every segment and sector was hit with losses except Energy. The VIX volatility index continues to rise with a 7.12% gain today. Energy (XLE +2.39%) was the only sector with gains as OPEC decided to keep production steady, causing crude oil prices to advance. Consumer Discretionary (XLY -2.12%) and Technology (XLK -2.21%) were bottom for another day. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators The US Dollar (DXY) advanced another +0.75%. That’s the highest level since November and is another factor on the valuations of large multi-national companies that dominate the indexes and are impacted by a stronger dollar. The stronger dollar makes exports more expensive and also devalues foreign subsidiary revenues as it's repatriated for reporting. Yields spikes again as US 30y and 10y treasury bonds. The 2y are also gained for the day. Comments by Jerome Powell were not enough to convince investors that inflation would remain under control, causing another sell-off in the bond market. High Yield Corporate Bonds (HYG) and Investment Grade Corporate Bond (LQD) prices both dropped for another day. Silver (SILVER) and Gold (GOLD) both declined. Crude Oil (CRUDEOIL1!) advanced on news that OPEC would keep production at current levels. Timber (WOOD) declined. Copper (COPPER1!) and Aluminum (ALI1!) both declined. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.803. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. As it approaches 0.60 (overly bullish) and below, watch for a possible pullback in the market. The CNN Fear & Greed index moved slightly into the fear level. The NAAIM Exposure Index dropped to 65.37 as money managers reduce positions in the market. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders Of the four big mega-caps, only Alphabet (GOOGL) ended the day with gains, advancing +1.12% and closing back above the 21d EMA. Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) all declined for the day and are trading below both the 21d EMA and the 50d MA. The decline of these mega-caps will continue to pull the indexes down and influence overall market sentiment. Exxon Mobile (XOM), Alphabet, Chevron (CVX) and Facebook (FB) were the top performing mega-caps. Tesla (TSLA), Taiwan Semiconductor (TSM), ASML Holding (ASML) and PayPal (PYPL) were at the bottom of the list. The energy stocks had a good day on the OPEC news. It's not clear to me why mega-caps in the Communication sector did well today. Only a few of the growth stocks tracked by the daily update had gains. Palantir (PLTR) gained 4.83%, possibly driven by retail trading. Moderna (MRNA) and Zoom Video (ZM) also ended the day with gains. Ehang Holdings dropped another -15.22% and is now almost 75% off its high set on 2/12. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead More employment data will be released in the morning. Today's data was slightly on the positive side but did not seem to impress investors. Big Lots (BIG) will report earnings before the market opens in the morning. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support and Resistance The trend-line from the 2/16 ATH is pointing to a +1.53% gain for tomorrow. The five-day trend line points to a +0.86% gain. The last three days have seen a fairly consistent angle of descent in prices. If the one-day trend continues, that will mean a -3.26% decline tomorrow. The index broke through the 13,000 support area and tested the 12,550 area that also held in an early January dip. If it passes that area, the next support area is 12,250. Yesterday, I showed the head and shoulders pattern on the Nasdaq chart. This pattern represents an attempt to move back to new highs that was rejected at a previous resistance point. Typically the height of the head is measured to determine the potential move downward that will occur as the price breaks below the neck line. The neck line was broken today and the measured move points to a previous support area around 11,800 - 12,000. That likely would not happen in a straight line. The reason to watch for it is not to overreact to bounces along the way. For example, it would not be unexpected for tomorrow to have gains in the index and then have a further downward move on Monday. Wait for your market rules to kick in, such as regaining the 21d EMA on higher volume. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up The Nasdaq is in official correction territory now with the close being 10% below the all-time high. The other major indexes have a bit to go for the official mark, but are also reacting to an overwhelming amount of selling pressure. There is a general sense that this is not over and selling could continue into next week or longer. However, I'll quote @MichaelGLamothe on twitter: "I think it’s good to have a thesis about which way the market is going to move. The problem comes when we become too attached to it and want to be proven right. There’s tons of great reasons why the market will collapse & why it’ll blast off. Be open/ready for anything." Keep engaged. Work on your watchlist, filling it with stocks that are doing better relative to other stocks, even in a decline. Many of those stocks will be the best opportunities when the market finds a bottom and moves up again. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
4
Reversal target in sight? The current bull run is still valid but based on a few technical indicators we may see some more price action to the downside before a continuation. There are several technical catalysts that may converge near or at the reversal target. Previous daily support, median line support, EMA convergence, and RSI hitting oversold (30). Momentum – While price makes a higher high from Jan to Feb, a bearish divergence occurs as the RSI makes a lower high, indicating a change in momentum foreshadowing the current pullback. As the RSI falls we see it break through the first key support level, tries to correct, and gets rejected by the midline (50) to then continue the downtrend. As RSI breaks the second key level it tries to break back through to the upside and fails. Judging by the EOD price action on Friday we can assume price rejection was successful and will continue to the downside. RSI is approaching oversold which is a prime area for a reversal in momentum. Trend – During the current bull run, we see the 12EMA converge on the 50EMA twice but never cross, indicating a strong uptrend. Despite the current price action, the uptrend remains intact as the 12EMA is converging on the 50EMA again but has not crossed. The 12EMA still has more room to the downside before finding support near the 50EMA. The current spread between the EMAs is approx. 2.3%, which is the distance from Friday's low to the lower median line. Chart Pattern – Price is trading in an ascending channel and attempted to test the upper median line, but was rejected initiating the current downtrend. Price is approaching the lower median line where support was confirmed by Sept, Oct, and Nov lows. Price holding the lower median line and breaking back out of the demand zone may be confirmation of a reversal back towards Jan and Feb highs. Support and Resistance – Price is approaching the upper part of the demand zone set by Dec highs and Jan Lows. If price can hold in or above the demand zone, that is a strong indicator bears are losing steam, and bulls may regain control soon. What do you think about this target for a potential reversal? Any comments or critiques would be appreciated! This idea is for discussion purposes only and is not financial advice.
NASDAQ:IXIC
by StonklyGainz
4
Daily Market Update for 3/3Trend lines drawn from the 2/16 ATH (12d), 2/25 (5d) and today 3/3 (1d).   Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, March 3, 2021 Facts: -2.7%, Volume higher, Closing range: 1%, Body: 90% Good: 13,000 just barely holding on Bad: Higher volume selling day shows institutional distribution Highs/Lows: Lower high, lower low Candle: Tiny upper wick created at open, thick red body with no lower wick Advance/Decline: More than two declining stocks for every advancing stock Indexes: SPX (-1.31%), DJI (-0.39%), RUT (-1.06%), VIX (+10.66%) Sectors: Energy (XLE +1.47%) and Financials (XLF +0.78%) were the top sectors. Consumer Discretionary (XLY -2.35%) and Technology (XLK -2.52%) were bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview The market continued its retreat on Wednesday with another session of selling that was shared broadly across the indexes. Only a few cyclical sectors were able to hang onto gains for the day as investors moved from high priced big tech and consumer discretionary stocks to recovery stocks expected to benefit from the economic recovery. The Nasdaq closed the day with a -2.70% loss on higher volume, marking a clear distribution day for the index. For a second day in a row, the index sold off for most of the day, producing a thick red body with no visible lower wick. The closing range was 1% and the red body covers 90% of the candle. Over two stocks declined for every advancing stock. The Dow Jones Industrial average (DJI) faired the best for the day, declining only -0.39%. It was held up by strong performances in Energy, Finance and Industrials. The S&P 500 (SPX) dropped -1.31% and the Russell 2000 (RUT) declined -1.06%. The VIX volatility index rose +10.66%. Energy (XLE +1.47%) and Financials (XLF +0.78%) were the top sectors. Industrials (XLI +0.11%) was the only other sector with gains. Consumer Discretionary (XLY -2.35%) and Technology (XLK -2.52%) were bottom. Communications (XLC -1.43%) also lost more than the overall index. These sectors have heavy weight mega-cap players that are leading the way down for the indexes. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators The US Dollar (DXY) advanced +0.22%. Yields for the US 30y, 10y and 2y all rose for the day, returning fears to investors' minds on the impact of higher interest rates to big tech and growth companies. High Yield Corporate Bonds (HYG) and Investment Grade Corporate Bond (LQD) prices both dropped for the day. Silver (SILVER) and Gold (GOLD) both declined. Crude Oil (CRUDEOIL1!) advanced despite inventories being higher than expected. Timber (WOOD) advanced. Copper (COPPER1!) and Aluminum (ALI1!) both declined. Copper gave back nearly all of its gains from yesterday. Aluminum declined just slightly compared to yesterday's huge gain. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.719. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. As it approaches 0.60 (overly bullish) and below, watch for a possible pullback in the market. The CNN Fear & Greed index moved back to the neutral level. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders All of the big four mega-caps had losses for a second day. Alphabet (GOOGL) was the only of the big four above the 21d EMA, but moved below the line today. Microsoft (MSFT) also hit a significant level, moving below its 40d MA. Apple (AAPL) and Amazon (AMZN) have both been trading below the two levels for the past two weeks. Bank of America (BAC) and JP Morgan Chase (JPM) led the mega-caps with +2.50% and 1.93% gains. These big banks are expected to benefit from the higher bond yields driving higher interest rates. PayPal (PYPL), Netflix (NFLX), Tesla (TSLA) and Nvidia (NVDA) were at the bottom of the mega-cap list. The only growth stock tracked by this daily update to end the day in the positive was Alibaba with a +0.79% advance. The hardest hit were Fiverr (FVRR), Esty (ETSY), Grow Generation (GRWG) and Moderna (MRNA), all with greater than 10% losses for the day. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Initial Jobless Games, Unit Labor Costs and Nonfarm Productivity data released tomorrow before market open will add to today's narrative around the slowing recovery. Either it will boost confidence or add to worries that maybe the economic recovery is slowing. Fed Chair Jerome Powell is scheduled to speak in early afternoon. Thursday's earnings reports will include Broadcom (AVGO), Costco (COST), Kroger (KR), Burlington Stores (BURL), Gap (GPS). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support and Resistance The five-day trend line is pointing to a +2.36% gain for tomorrow. The index is at the lower line of the five-day regression trend channel. The trend-lien from the 2/16 ATH is pointing to a +0.60% gain for tomorrow. If the one-day and two-day trends continue, then another -1.60% decline can be expected tomorrow. The index is sitting just a hair below 13,000 right now. If there is further downside, the 12,550 area also held in an early January dip. If it passes that area, the next support area is 12,250. There is a head and shoulders pattern on the Nasdaq chart. This pattern represents an attempt to move back to new highs that was rejected at a previous resistance point. Generally speaking, the height of the head is measured to determine the potential move downward that will occur as the price breaks below the neck line. That points to a previous support area around 11,800 - 12,000. That likely would not happen in a straight line. The reason to watch for it is not to overreact to bounces along the way. Wait for your market rules to kick in, such as regaining the 21d EMA on higher volume. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It's tough to watch the market retreat and worry about where it might find the bottom. It's important for my daily homework to not try to predict the movements. Rather we look at the chart and set some expectations so we can act following the set of trading rules that work for me. You should also have a set of rules that work for your trading style and risk tolerance. The market followed thru with the expectation we set yesterday of lower. Today, the expectation is still set for sideways or lower. We'll look for an expectation breaker as a positive development, especially if the 13,000 area support holds. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
28
Daily Market Update for 3/2Trend lines drawn from the 2/16 ATH (11d), 2/24 (5d) and today 3/2 (1d).   Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, March 2, 2021 Facts: -1.69%, Volume lower, Closing range: 3%, Body: 97% Good: Stayed above 50d MA Bad: All red body, no visible upper/lower wicks, back below 21d EMA Highs/Lows: Higher high, lower low Candle: Marubozu black candle with no wicks, all red body, outside day Advance/Decline: More than three declining stocks for every advancing stock Indexes: SPX (-0.81%), DJI (-0.46%), RUT (-1.93%), VIX (+3.21%) Sectors: Materials (XLB +0.56%) only gaining sector. Consumer Discretionary (XLY -1.15%) and Technology (XLK -1.59%) were bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview The market gave up half of yesterday's gains in a continuation of two weeks of choppiness as investors await a stimulus bill that will have both positive and negative impacts on equities. Today's expectation breaker after yesterday's session requires a deeper look to understand. Investment has been rotating in and out of Consumer Discretionary and Technology for the past two weeks. The Nasdaq closed the day with a -1.69% decline on lower volume. The 97% red body with no visible upper and lower wick forms a Marubozu (shaven head) candlestick. The 3% of lower wick was formed in just the last few minutes of trading as most of the day was dominated by selling. There were three declining stocks for every advancing stock. The S&P 500 (SPX) and Dow Jones Industrial average (DJI) lost -0.81% and -0.46%. The Russell 2000 (RUT) turned in the worst performance of the day with a -1.93% decline. The VIX volatility index advanced +3.21% Materials (XLB) was the only gaining sector with a +0.56% advance. Also near the top of the sector list, but with a small loss, was Industrials (XLI) which declined -0.29%. Both sectors are likely to benefit from infrastructure projects planned to boost economic recovery. The bottom two sectors were also the only two to underperform the SPX. They were Consumer Discretionary (XLY -1.15%) and Technology (XLK -1.59%). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators The US Dollar (DXY) declined -0.25%. Yields on the 30y treasury bonds remained about the same while the 10y yields dropped. The 2y treasury bond yields remained flat. High Yield Corporate Bonds (HYG) and Investment Grade Corporate Bond (LQD) prices both dropped for the day. Silver (SILVER) and Gold (GOLD) both advanced for the day. Crude Oil (CRUDEOIL1!) advanced slightly after declining yesterday. Timber (WOOD) declined. Copper (COPPER1!) and Aluminum (ALI1!) both advanced considerably, moving up alongside the performance in the Materials sector. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio dropped slightly to 0.578 as investors moved back to a bullish level. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. As it approaches 0.60 (overly bullish) and below, watch for a possible pullback in the market. The CNN Fear & Greed index is lower than the previous day, but still in the greed range. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders All of the big four mega-caps had losses for the day. Alphabet (GOOGL) is the only of the four trading above the 21d EMA. Microsoft (MSFT) closed below the 21d EMA, but is still trading above the 50d MA. Apple (AAPL) and Amazon (AMZN) are trading below both lines and their 21d EMA is below the 50d MA as they continue to look bearish. AT&T (T), Coca-Cola (KO) were among a short list of mega-caps that had gains for the day. Tesla (TSLA) was at the bottom of the list -4.45%, down 20% from yesterday's intraday high. Square (SQ) and Dr Horton (DHI) were the only two growth stocks for the daily update with gains, advancing +4.65% and 1.47%. NIO (NIO) dropped -13.0% after a disappointing earnings release. Zoom Video (ZM) dropped -9.00% after gapping up and then giving up 15% in intraday selling. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead There is an OPEC Meeting scheduled for tomorrow that will impact crude oil prices and likewise the energy sector. Crude Oil Inventories will also be released later in the day. The weekly stock numbers released today were higher than expected. Non-farm Employment data before market open will give an update on the labor market. Just after the market opens, Services and Non-Manufacturing purchasing data will give a heads up on activity levels for the two sectors. Wednesday's earnings reports include Snowflake (SNOW), Okta (OKTA), Marvell (MRVL), Splunk (SPLK), and Dollar Tree (DLTR). Check the companies in your portfolio for earnings reports so you are not surprised. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support and Resistance The five-day trend line is pointing to a +0.65% gain for tomorrow. The one-day trend line points toa -0.39% while the trend-line from the 2/16 ATH is pointing to a -1.52% loss. Both of those moves would put the index back below the 50d MA. If there is further downside, the index held the 13,000 area as support in the previous two weeks. The 12,550 area also held in an early January dip. If it passes that area, the next support area is 12,250. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Looking at Monday and Tuesday, it seems like another choppy week is ahead. Today was dominated by selling, and with a thick red bodied candle, the expectation tomorrow has to be for Lower. Since there is support at the 50d MA, we can also expect a Sideways move. If there is a positive expectation breaker, then a gain on higher volume that takes the index back above the 21d EMA would provide confidence in a rally attempt. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
4