$SPY Flies High

By far, the most talked about chart today was the S&P 500, which broke out to a new year-to-date high. The index joins the Nasdaq 100, which has been leading the U.S. stock market higher, marking two of the four major indexes breaking out. 📈

Bullish investors view this as a broadening out of market participation and the potential nail in the coffin of the “bear market” narrative. However, bearish investors suggest that the overlap between holdings skews the results, as only a few mega-cap stocks account for most of the gains. 🐻🐂

Regardless of your side, all eyes are on whether the Dow Jones Industrial Average and Russell 2000 begin to play catch up. Both indexes have lagged their counterparts off their October lows, so the bulls want to see them play catch up. The more stocks that are participating, the better the argument for a “new bull market” becomes.

That’s particularly true of the small-cap Russell 2000, which has been sitting near year-to-date lows since March. Whether or not today’s 3.63% rally in the index is the start of its move higher remains to be seen. Rest assured, investors will be watching this development in the coming weeks. 👀

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IPO Hype Proves Short Lived

The U.S. initial public offering (IPO) market welcomed its third unicorn in the past week, with marketing automation company Klaviyo debuting on the NYSE today.

It offered 19.2 million shares, with 11.5 million sold by the company to raise $345 million in cash. The pricing gave it a $9 billion valuation, down slightly from its $9.5 billion private round in 2021. 💸

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Traders Remove IPO From $CART

With the public markets rebounding in 2023, more and more tech IPOs are testing the waters again. Last week, Arm Holdings kicked things off with the most prominent initial public offering (IPO) since 2021, pricing at the top of its range and popping 25% on its first day of trading. 🤩

That caused Instacart’s parent company, Maplebear Inc., to price at the top end of its $28 to $30 price range and achieve the $10 billion valuation it was seeking.

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There’s Always A Bear Market Somewhere

Most people tend to focus on stocks that are going up, especially in times of a market rally. Heck, Jim Cramer even has a saying, “There’s always a bull market somewhere.” But there’s also always a bear market somewhere, which today’s stock chart reminds us. 🐻

Below is a weekly chart of biotech giant Illumina. The stock has been more or less crashing for nearly two years, with activist investor Carl Icahn and others questioning management’s judgment after a rushed acquisition and other decisions.

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Apple Trend Breaks Before Earnings

All eyes are on Apple and Amazon earnings tomorrow. But some traders say the chart of Apple suggests some pain ahead for the consumer tech giant. 🤔

Below is the daily chart of Apple, which has been in a clear uptrend all year. Traders are pointing to today’s breakdown below a multi-month uptrend line as a potential short-term trend change and a potential omen of weak earnings to come. 👇

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