The markets are all decisively in the red today, and on the way to a three-day losing streak.  An early rally attempt failed as investors continue to mull over TIk Tok news and the stall on Capitol Hill relating to the next round of stimulus.  Today, is quadruple witching, so that too will add to market volatility.

After having some time to digest the latest Tik Tok saga, the news has added to investor concern and is adding pressure to Technology as a whole.  Starting Sunday, the U.S. will no longer allow users to download TikTok or WeCHat.  Apple (AAPL) and Microsoft (MSFT) are getting hit the hardest and semiconductors are also taking a beating.  The Philly Semiconductor index is down over 2%. 

All of FAANG is down, and Technology is by far the worst performing sector.  Of the 11 S&P 500 sectors, only Financials and Healthcare are in the green as investors look for some buying opportunities from beaten down sectors. The S&P 500 was not able to hold 3,331 and has broken below its 50-day moving average of 3,343.  Let’s see if buyers emerge.

Breadth is negative, decliners are outpacing advancers, but substantially more new stocks are hitting 52-week highs than lows as rotation continues.

On a brighter note, the final read for University of Michigan’s consumer sentiment hit a 6-month high in September to 78.9 from August’s read of 74.1, and topping expectations of 75. 

• Consumer Expectations increased to 73.5 from 68.5
• Current Conditions rose to 87.5 from 82.9
• Inflation expectations decreased to 2.7% from 3.1% for the year ahead, and 2.6% from 2.7% for 5 year

For those celebrating the New Year, we wish you a happy and healthy and sweet Rosh Hashanah.  Have a great weekend, all. Stay safe and be well.