This week, the market nearly broke below all key support levels, including the XLK (tech index). It looks very negative now, showing a sell signal. Inskip fears XLK could fall to $225, the next floor of support and the 26-week moving average. Bearish.
The post-election rally kept the S&P up, and Inskip was hoping it would remain above 5,850, a key level. It closed the week today at 5,827, crossing that support. Next level of support is 5,783. According to the Ichimoku Cloud, the S&P chart has turned negative, bearish. Inskip thinks we could roll back the entire post-election rally, taking us down to 5,783. The S&P broke below the 13-week average.
The markets have turned bearish, suddenly changing last Tuesday, as the market break below previous levels of support and moving averages, including the 40-week, and including tech and the broader S&P. The Mag 7, however, is more resilient compared to other sectors as yields rise, including today. Inskip notes that tech bounces back faster than other sectors after they sell off with the entire market. Tech can still report fine earnings. The Mag 7 has a 5% downside cushion before brushing against the 13-week moving average. We've seen inflation scares in the recent past as market climb, but those are the moments to buy, not sell. We could see a rally later, but a narrow one led by tech.
Great fundamentals, though a quarter of the US still bans sports betting. DKNG has done a good job increasing parlay use. Delta just announced a partnership--we'll see how that plays out. iGaming saw a 14% bounce last quarter in customer count YOY; it's small, but has a lot of room to expand. Overall, DKNG has a lot going for it, and it does well during the NFL playoffs. Also, shares are down a lot, so shares are cheap.
They report Thursday. He likes it. It's a barometer of the economy. Watch their report.