Guy S. Ortmann, CMT | May 02, 2022 09:23AM ET
All the major equity indexes closed lower Friday, posting notable loses, ending the session at or near their intraday lows. They also violated their respective near-term support levels leaving all but one in near-term downtrends.
As well, cumulative market breadth deteriorated further with all the exchanges showing negative breadth and all below their 50 DMAs. Yet, while the charts have yet to send signals suggesting the recent market declines from the March highs are complete, some encouragement was coming from the data dashboard as discussed below.
Nonetheless, while the data may be suggesting some relief, the charts have yet to imply we have seen a completion of the current market correction.
On the charts, all the major equity indexes saw notable losses Friday as they violated support leaving all in near-term downtrends, except the DJT which remains neutral. All closed at or near the lows of their session ranges. The DJI, which was neutral, reversed to negative.
And while the charts sank, cumulative market breadth for the All Exchange, NYSE and NASDAQ remained negative and below their 50 DMAs after making lower lows.
The stochastic levels remained oversold as was the case all last week and have yet to register bullish crossover signals. As such, the charts were not suggesting a shift in direction at this point.
However, the data is offering some encouraging signs.
In conclusion, while the data implied some relief may be forthcoming, the charts have yet to send essential signals that would suggest the recent market weakness had been exhausted.
SPX: 4,115/4,243 DJI: 32,828/33,492 COMPQX: 11,962/12,840 NDX: 12,597/13,493
DJT: 14,675/14,934 MID: 2,483/2,581 RTY: 1,800/1,940 VALUA: 8,828/9,000
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