Why Did Stocks Close Off Their Lows, and Why Did Celsius, SPWR, and ON Show Strength? | Stock Market Today

TL;DR

Stocks closed well above their intraday lows, but the broader trend remained weak, with the Nasdaq 100 down close to 6 percent for the week and SPY down about 5.2 percent. SunPower, Celsius, and On Semiconductor stood out as relative bright spots while institutional selling and rising rates kept risk elevated. Read on for the key index levels, market signals, and stocks discussed.

Transcript

good afternoon everyone and welcome to stock market today it's ali corman kentrieve here with a breakdown of the action in today's session where we did see stocks close well off of their lows after a big morning gap down but was it enough to turn the market tide ken stocks closing with big weekly losses this week yes indeed just looking at the nasd... Read More

Key Insights

• 🛀 Solar stocks, such as SunPower and Celsius, showed strength and support in a weak market.
• 📶 Semiconductor stocks, including On Semiconductor, exhibited relative strength and potential for market leadership in the EV industry.
• ❎ Negative sentiment and concerns about a worldwide recession have contributed to market weakness.
• 😮 Rising interest rates pose challenges for the stock market.
• ™️ The market remains challenging and difficult to trade, with volatility and potential whipsaw movements.
• 🥳 Fear and volatility, as measured by VIX and put-call ratio, have increased but not yet reached extreme levels.
• 🥺 Leading stocks, including celsius and n-phase, have shown relative strength but need continued monitoring.

Questions & Answers

Q: Why did stocks fall sharply before closing off their lows?

FedEx sparked the early selling after its CEO said economies around the world were slowing and warned of a worldwide recession. Buyers entered the market later, helping the indexes finish near their session highs.

Q: How did the major stock indexes perform during the session?

The Nasdaq closed down nine tenths of a percent, while the S&P 500 fell seven tenths of a percent. The Dow declined about half a percent, and the Russell 2000 was on pace for a 1.6 percent decline heading into the close.

Q: How large were the weekly stock market losses?

The Nasdaq 100 was down close to 6 percent for the week. SPY was down about 5.2 percent, and the Nasdaq composite also recorded a large weekly loss of almost 6 percent.

Q: Did the Nasdaq break below important support levels?

The Nasdaq closed at 11,448, below the 11,533 low and beneath the lows from September 6 and July 26. The speakers said it was difficult to call this a true breakdown because the index recovered to close near its session highs.

Q: What did the weekly Nasdaq chart show?

The Nasdaq posted a large outside reversal for the week and was turned away sharply at the 10-week moving average. It also remained below the 40-week moving average, where an earlier advance had been rejected.

Q: Why did SunPower, Celsius, and On Semiconductor stand out?

SunPower, ticker SPWR, showed strength while solar stocks led even when the broader market was sharply down. Celsius continued showing strength and support, while On Semiconductor, ticker ON, was highlighted as a solid chipmaker in the EV market.

Q: What indicated that institutions were selling stocks?

The S&P 500 had its seventh distribution day the previous session and was expected to record an eighth after the current session. These higher-volume declines were presented as evidence that institutions were selling stocks.

Q: What approach did the speakers suggest for investors in this market?

They said the elevated-risk market was better watched from the sidelines than approached with new long positions. Investors should recognize when market signals are pushing them out, especially when recent purchases are not working, instead of relying on a hold-and-hope mentality.

Summary & Key Takeaways

• Number: The Nasdaq 100 fell close to 6 percent for the week, while SPY declined about 5.2 percent.

• Number: The Nasdaq closed down nine tenths of a percent for the session after recovering from a large morning gap down.

• Number: The S&P 500 fell seven tenths of a percent, and the Dow declined about half a percent.

• Number: The Russell 2000 was on pace for a 1.6 percent decline heading into the close.

• Number: The Nasdaq closed at 11,448, below the 11,533 low and the lows from September 6 and July 26.

• Compare: Daily buying lifted the Nasdaq near session highs, but the weekly chart showed a large decline and rejection at the 10-week moving average.

• Who: FedEx sparked early selling after its CEO warned that global economies were slowing and predicted a worldwide recession.

• Who: SunPower, ticker SPWR, Celsius, and On Semiconductor, ticker ON, were the three stocks highlighted for strength.

• Definition: Distribution days are higher-volume declines that the speakers used to identify institutional stock selling.

• Number: The S&P 500 had a seventh distribution day, with an eighth expected after the session.

• When: A two-day Fed meeting was scheduled for the following week, with 75 basis points fully priced in for Wednesday.

• Compare: Select stocks remained strong, but the broad market trend was lower and the speakers described risk as very elevated.