BO Test Day Two as SPY, QQQ, DIA, IWM Rally Pauses Again...CRM Leads SPX, DJIA...Energy Leads Sectors...

© 2022

The SPX -30.92 opened higher and reversed lower after the ISM report at 10 am ET.  SPY, QQQ, IWM, DIA extended Monday’s pause BO test for a second day. 

The ISM Manufacturing Index was 56.1 vs. 54.5 expected, which apparently raised concerns of Fed tightening, perhaps a classic case of good news is bad news.  Contrary to that conclusion, investors should be glad that the economy is strong enough to handle rising rates, after all the dual mandate of the Fed is price stability and maximum sustainable employment.

The Fed’s Mary Daly, John Williams and James Bullard all spoke on Wednesday with some of the financial media attributing at least partial credit to their comments for today’s market weakness.

Jamie Dimon, JPM CEO, was also given credit for some of today’s weakness by headlining his comparison of U.S. economic challenges with a “hurricane.”  What was not headlined was the more complete statement, “Right now, it’s kind of sunny things are doing fine.  Everyone thinks the Fed can handle this.  That hurricane is right out there down the road coming our way.  We just don’t know if it’s a minor one or Superstorm Sandy.”

SPY down 3.34 at 409.59, on 86.5 million shares, below average volume, down on lower volume.

VIX down .50 at 25.69

QQQ down 2.28 at 306.00

CRM, CVX, CAT, IBM led the DJIA, 8 advancers, -1

CRM, SWN, BKR, HPQ, HES led the SPX, 97 advancers

DDOG, PCAR, OKTA, AMZN led the NDX, 23 advancers

The two-year trend term is up.  The one-year trend down a little.

Up: 

Down: DIA, IWM, QQQ, SPY,

One of eleven sectors was higher on Wednesday, led by XLE, XLU and XLK.

Energy leaders:  SWN, BKR, HES, FTI

Utilities leaders:  NEE, AWK, ATO, EVRG

Technology leaders: CRM, HPQ, NOW, HPE

Advancers weakened on Wednesday as decliners led 1,976 to 1,341 on the NYSE and led 3,078 led to 1,636 on the NASDAQ.

The SPY MFC green line is pointed up at 39.6 and is short-term bullish.  SPY opened lower on a day two BO test that closed above the BO level.

Uptrend sectors:  XLE, XLU,

Neutral sectors:  XLP, XLV, XLB,

Down trend sectors: XLRE, XLY, XLI, XLK, XLF, XLC,

The 6-month intermediate trend is down.  The ten-day trend is up.

3-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Up

23 of 100 NDX stocks closed higher on Wednesday.

52 NDX stocks are above their 30 DMA:   MNST, GILD, EA, NTES, NXPI, XEL, ADI, SNPS, AMGN, EXC, MCHP, SIRI, TMUS, VRTX, AEP, AMD, CHTR, CMCSA, KLAC, LRCX, SGEN, ZM, ADBE, ADSK, AMAT, BIDU, BKNG, CDNS, DLTR, FISV, FTNT, LCID, MU, PDD, TXN, ADP, ASML, AVGO, CTAS, DOCU, INTU, JD, MAR, MRNA, MRVL, MSFT, MTCH, NVDA, PCAR, QCOM, SBUX, AMZN,

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 1

AMZN,

Moving Below 30 DMA = 6

ATVI, CPRT, INTC, PYPL, SWKS, WBA,

 

Add Comments here: