Market Recap 5/18/23

Dow +115.14 at 33535.82, Nasdaq +188.27 at 12689.01, S&P +39.28 at 4199.32

It was another good day for the stock market, building on yesterday’s gains. The major indices traded in mixed fashion, though, throughout most of the session until a late afternoon surge higher. That move saw the S&P 500 breach the 4,200 level for the first time since August 2022. Ultimately, the S&P 500 closed at its best level of the year, just a whisker shy of 4,200.

Mega cap stocks led the charge, again, with several names reaching new 52-week highs today. Microsoft (MSFT 318.52, +4.52, +1.4%), Alphabet (GOOG 123.52, +2.04, +1.7%), Meta Platforms (META 246.85, +4.36, +1.8%), and NVIDIA (NVDA 316.78, +15.00, +5.0%) are the standouts in that regard.


There was relatively depressed SOX exposure and the fact the crowd started chasing semis a few days ago, SOX has exploded to the upside since touching the big trend line. Note first bigger resistance is slightly higher.

Gold was seen by many as the”ultimate” debt ceiling risk hedge. This has proven to be the total opposite. Gold continues selling off sharply. We are well below the 50-day and trading at must-hold levels here. A close slightly lower and the 100-day moving average as well as the longer-term trend both come into play, at 1920 ish.

Soc Gen says this on “pain trade” in the S&P: strongest net shorts in 12 years but index performance still positive.  Squeeze anyone?

“Long cyclicals short defensives” had its biggest 1day move higher on the year yesterday.

Will Nazzy lead the rest of the sectors into a melt-up?

ZTO also triggered long today.

See you in the morning.

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