Abstract
Whereas the inventory market is washed out, it just lately was very oversold on many timeframes and sentiment remained terrible. That might be the reason for days like Wednesday, when there was an enormous pop. However there’s nonetheless a lot to fret about when wanting on the technical situation of the market. Lengthy-term breadth is horrible and has been within the hazard zone since early March. The quantity of S&P 500 (SPX) shares above their 200-day common sank to a latest low of 23%, the weakest stage because the 2022 bear market (when it fell to 12%). Some 21% of S&P 100 shares are above their 200-day, whereas the QQQ studying has dropped to twenty-eight%. Once we have a look at most charts, it is laborious to discover a bullish, or perhaps a impartial, chart. Generally, issues look so unhealthy that they finally develop into good! The NYSE New Excessive-New Lows studying crossed beneath its 50-day common, its first promote sign since 2022 and 2023. Much more disturbing is that New NYSE Lows just lately surged over 1000 points, or 37% of points within the index. When this studying rises above 10%, it usually has been a foul signal for shares. From a momentum standpoint, the weekly Coppock Curve has dropped into bearish territory and continues to be falling, this after tracing out a large bearish divergence late final yr. The month-to-month Copp