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The S&P 500 finished the day flat, but it was a back and forth session as investors await the FOMC meeting tomorrow. If perhaps the market can get one hurdle out of the way maybe that it would be a good thing.
There has been so much damage done to this market that it seems unlikely the repairs can take place quickly. Even if the FOMC delivers what investors want to hear it may not be enough to help lift the market from its recent slump right away.
First is the Russell, and its inability to rise above resistance today around 1,394. The index just drifted lower from there. It may take some big news tomorrow to reverse this trend, but this may be the most important index to watch these days. The current trend takes the index down to $1,344.
The biotech IBB ETF broke a critical level today when it fell below $100. $100 had been the line in the sand for the ETF since August of 2016. Now that is broken, a drop to $96 is possible.
The Bank Index is nearing a big breakdown, and should the BKX fall below $85; I fear a decline to $75 may be in the works.
The semiconductors continue to trend higher, which is a positive. But tonight Micron disappointed and the sector will be tested tomorrow.
The problem for the company was the weak 2Q guidance which is no surprise right? We have spoken about this before. The company guided revenue to a range of $6.0 billion a the mid-point, the street was looking for $7.2 billion. The company guided EPS to $1.75 a the mid-point, the street was at $2.44. The stock is trading around $31 after hours, and the next level of support doesn’t come until $29.
I didn’t have a chance to hear the call or read it yet. I shall; I am curious to see what they say about the impact of tariffs.
The big day will be tomorrow, and these four items will be the ones I am watching the closest.
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