Summary: Investors sold off high-risk assets as the Russia-Ukraine conflict continued to escalate.
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
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Tuesday, February 22, 2022
Facts: -1.23%, Volume higher, Closing Range: 36%, Body: 12% Red
Good: Nothing
Bad: Lower high, lower low, low advance/decline
Highs/Lows: Lower high, Lower low
Candle: Thin red body in lower part of the candle between long upper and lower wicks
Advance/Decline: 0.38, almost three declining stocks for every advancing stock
Indexes: SPX (-1.01%), DJI (-1.42%), RUT (-1.45%), VIX (+3.82%)
Sector List: Utilities (XLU -0.11%) and Health (XLV -0.25%) at the top. Energy (XLE -1.62%) and Consumer Discretionary (XLY -2.92%) at the bottom.
Expectation: Sideways or Lower
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Market Overview
Investors sold off high-risk assets as the Russia-Ukraine conflict continued to escalate.
The Nasdaq closed with a -1.23% decline. Volume was higher than the previous day. The candle has a long upper and lower wick that surround a 12% red body resting just below the mid-point of the daily range. The closing range was 36%. There were almost three declining stocks for every advancing stock.
The S&P 500 (SPX) had the smallest losses, declining by -1.01%. The Russell 2000 (RUT) suffered the worst losses, declining by -1.45%. The Dow Jones Industrial Average (DJI) declined by -1.42%. The VIX Volatility Index climbed by +3.82%.
All eleven S&P 500 sectors declined. Utilities (XLU -0.11%) and Health (XLV -0.25%) held up the best. Defensive sectors were the favorite today. Energy (XLE -1.62%) and Consumer Discretionary (XLY -2.92%) were at the bottom of the list.
On brighter news, economic data was positive. The Manufacturing and Services Purchasing Managers Index for February showed a pickup in activity over January and beat forecasts. CB Consumer Confidence for February also beats expectations, coming in at 110.5 compared to 110.
The US Dollar index (DXY) declined by -0.07%. The US 30y Treasury yield remained about flat while the 10y and 2y yields rose, narrowing the gap between long-term and short-term treasuries. Both High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices declined.
The put/call ratio (PCCE) declined to 0.890. That is still in a bearish range but lower than the 1.05 ratio on Friday.
All big six mega-caps declined for the day. Tesla (TSLA) had the biggest decline, losing -4.14% today. Microsoft (MSFT) rallied to intraday gains but ended the day with a -0.07% decline.
AbbVie (ABBV) topped the mega-cap list with a +3.52%. Home Depot (HD) was at the bottom of the list with a -8.85% decline. The company beat revenue and earnings expectations but provided guidance showing slower growth in 2022.
Roku (ROKU) bounced back from last week's post-earnings losses with a +8.46% gain today, landing at the top of the Daily Update Growth List. UP Fintech (TIGR) was at the bottom of the list with a -11.21% loss after more regulatory pressure from China scared off investors.
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Looking ahead
European inflation data arrives overnight. Otherwise, there is no economic news for the US before the market opens. API Weekly Crude Oil Stock comes in the afternoon.
Lowe's (LOW), Booking (BKNG), TJX (TJX), eBay (EBAY), NetApp (NTAP), and NiSource (NI) are some of the earnings reports for Wednesday.
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Trends, Support, and Resistance
The Nasdaq chopped up and down today but ended the day lower. The low was still higher than the 1/24 low.
If the index returns to the trend line from the 2/10 high, it would mean a +0.06% gain for tomorrow.
The one-day and five-day trend lines point to a -1.42% decline.
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Wrap-up
There is not much to do but watch what happens in Ukraine. There is still room for indexes to go lower on further increased tensions. If some resolution can be found, perhaps we can find a bottom and see some constructive period heading into March.
The expectation for tomorrow is Sideways or Lower.
Stay healthy and trade safe!
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
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Tuesday, February 22, 2022
Facts: -1.23%, Volume higher, Closing Range: 36%, Body: 12% Red
Good: Nothing
Bad: Lower high, lower low, low advance/decline
Highs/Lows: Lower high, Lower low
Candle: Thin red body in lower part of the candle between long upper and lower wicks
Advance/Decline: 0.38, almost three declining stocks for every advancing stock
Indexes: SPX (-1.01%), DJI (-1.42%), RUT (-1.45%), VIX (+3.82%)
Sector List: Utilities (XLU -0.11%) and Health (XLV -0.25%) at the top. Energy (XLE -1.62%) and Consumer Discretionary (XLY -2.92%) at the bottom.
Expectation: Sideways or Lower
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Investors sold off high-risk assets as the Russia-Ukraine conflict continued to escalate.
The Nasdaq closed with a -1.23% decline. Volume was higher than the previous day. The candle has a long upper and lower wick that surround a 12% red body resting just below the mid-point of the daily range. The closing range was 36%. There were almost three declining stocks for every advancing stock.
The S&P 500 (SPX) had the smallest losses, declining by -1.01%. The Russell 2000 (RUT) suffered the worst losses, declining by -1.45%. The Dow Jones Industrial Average (DJI) declined by -1.42%. The VIX Volatility Index climbed by +3.82%.
All eleven S&P 500 sectors declined. Utilities (XLU -0.11%) and Health (XLV -0.25%) held up the best. Defensive sectors were the favorite today. Energy (XLE -1.62%) and Consumer Discretionary (XLY -2.92%) were at the bottom of the list.
On brighter news, economic data was positive. The Manufacturing and Services Purchasing Managers Index for February showed a pickup in activity over January and beat forecasts. CB Consumer Confidence for February also beats expectations, coming in at 110.5 compared to 110.
The US Dollar index (DXY) declined by -0.07%. The US 30y Treasury yield remained about flat while the 10y and 2y yields rose, narrowing the gap between long-term and short-term treasuries. Both High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices declined.
The put/call ratio (PCCE) declined to 0.890. That is still in a bearish range but lower than the 1.05 ratio on Friday.
All big six mega-caps declined for the day. Tesla (TSLA) had the biggest decline, losing -4.14% today. Microsoft (MSFT) rallied to intraday gains but ended the day with a -0.07% decline.
AbbVie (ABBV) topped the mega-cap list with a +3.52%. Home Depot (HD) was at the bottom of the list with a -8.85% decline. The company beat revenue and earnings expectations but provided guidance showing slower growth in 2022.
Roku (ROKU) bounced back from last week's post-earnings losses with a +8.46% gain today, landing at the top of the Daily Update Growth List. UP Fintech (TIGR) was at the bottom of the list with a -11.21% loss after more regulatory pressure from China scared off investors.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Looking ahead
European inflation data arrives overnight. Otherwise, there is no economic news for the US before the market opens. API Weekly Crude Oil Stock comes in the afternoon.
Lowe's (LOW), Booking (BKNG), TJX (TJX), eBay (EBAY), NetApp (NTAP), and NiSource (NI) are some of the earnings reports for Wednesday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The Nasdaq chopped up and down today but ended the day lower. The low was still higher than the 1/24 low.
If the index returns to the trend line from the 2/10 high, it would mean a +0.06% gain for tomorrow.
The one-day and five-day trend lines point to a -1.42% decline.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
There is not much to do but watch what happens in Ukraine. There is still room for indexes to go lower on further increased tensions. If some resolution can be found, perhaps we can find a bottom and see some constructive period heading into March.
The expectation for tomorrow is Sideways or Lower.
Stay healthy and trade safe!
