Daily Market Update for 7/1

Original Chart

Notes

Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.

Friday, July 1, 2022

Facts: +0.90%, Volume lower, Closing Range: 98%, Body: 58% Green
Good: High closing range, long lower wick
Bad: Lower high, volume lower on gain
Highs/Lows: Lower high, Higher low
Candle: Half green body above long lower wick
Advance/Decline: 1.25, more advancing than declining stocks
Indexes:SPX (+1.06%), DJI (+1.05%), RUT (+1.16%), VIX (+3.11%)
Sector List: Utilities ( XLU +2.45%) and Consumer Discretionary ( XLY +1.84%) at the top. Materials ( XLB +0.71%) and Technology ( XLK +0.23%) at the bottom.

Market Overview

The first day of the second half of the year saw markets rise after dipping in the morning. However defensive stocks still lead with the Utilities sector on top. Treasury yields fell throughout the week, falling again on Friday.

The Nasdaq rose by +0.90%. Volume was much lower than the previous three days. The 58% green body sits above a long lower wick and ends with a 98% closing range for the day. There were more advancing stocks than declining stocks.

The Russell 2000 (RUT) led the major indexes, gaining by +1.16%. The S&P 500 (SPX) advanced +1.06% and the Dow Jones Industrial Average (DJI) rose by +1.05%. The VIXVolatility Index was up by +3.11%

All eleven S&P sectors rose. Utilities ( XLU +2.45%) and Consumer Discretionary ( XLY +1.84%) were the top two sectors. Materials ( XLB +0.71%) and Technology ( XLK +0.23%) were at the bottom of the sector list.

The ISM Manufacturing PMI for June was 53.0. It was expected higher at 54.9.

The US Dollar Index DXY ) rose by +0.36%. US 30y, 10y, and 2y Treasury Yields fell. High Yield ( HYG ) and Investment Grade ( LQD ) Corporate Bond prices rose. The gap between High Yield Corporate Bonds and short-term Treasury Bonds continued to widen. Brent Oil rose to $110 a barrel.

The CNN Fear & Greed index is in Extreme Fear.

Four of the big six mega-caps gained. Microsoft MSFT ) rose by +1.07% to close above its 21d EMA . The biggest gain of the day goes to Amazon ( AMZN ) which advanced by +3.15%. Meta ( FB ) had the biggest loss, declining by -0.76%.

Amazon also topped the broader mega-cap list followed by Coca-Cola (KO) which rose by +2.34%. Taiwan Semiconductor ( TSM ) and Nvidia NVDA ) were at the bottom of the list, falling by -5.81% and -4.20%.

The best stock in the Daily Update Growth List was Etsy ETSY ) which gained a huge +9.02%. Nvidia was at the bottom of the growth list.

Looking ahead

Markets are closed on Monday for the Fourth of July Holiday.

Tuesday will start off the week with Factory Orders data for May.

Trends, Support, and Resistance

The Nasdaq traded below the 21d EMA for the last four days. Today’s brief rally at open turned into a sell-off and then a steady gain through the rest of the day.

If the index follows the one-day trend line , that would end near the trend line from the 6/16 low and result in a +1.16% gain for Tuesday.

The five-day trend line points to a -3.24% decline.

Wrap-up

Have a wonderful Fourth of July weekend!

Stay healthy and trade safe!

Comments

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