Market Recap 4/5/23

Dow +80.34 at 33482.63, Nasdaq -129.47 at 11996.86, S&P -10.22 at 4091.65

The stock market had a weak showing today. Money flowed into blue-chip names and countercyclical sectors while more economically-sensitive sectors logged decent losses following another batch of weak economic data this morning.

Briefly, the ADP Employment Change for March was weaker than expected (actual 145,000; consensus 205,000), the February trade deficit widened more than expected (actual $70.5 billion; consensus -$69.0 billion) with monthly declines in exports and imports, and the March ISM Non-Manufacturing Index was weaker than expected (actual 51.2%; consensus 54.5%). Still over 50.0% though. Under 50% implies retraction.

I’m watching Nazzy closely. I’ve said it’s ahead of itself and needs to consolidate. Doesn’t mean a massive drawdown, but bears watching. It held key short-term 8-day moving average support today.

Energy chilled today. I said last night not to chase first-day pops because most of it is knee-jerk short covering and energy has a high short position.

ETHE is now over the 200-day moving average. It triggered yesterday. Let’s see what happens now.

Financials continue to act horribly. The sector is an important part of that market on a macro and technical basis so keep watching the action in XLF, KRE, and BKX.



Previous Post
Market Recap 4/4/23
Next Post
Market Recap 4/11/23

Recent Articles