Guy S. Ortmann, CMT | Apr 19, 2022 09:09AM ET
The major equity indexes closed mostly lower yesterday with only one managing to post a gain. Market internals were negative on the NYSE and NASDAQ with the NYSE seeing volumes rise as the NASDAQ’s dipped from the prior session.
All closed near the midpoints of their intraday ranges. However, the weakness left the near-term trends unchanged as all but two remain in near-term downtrends.
And while market breadth remains poor, the data remains generally neutral except for the investor sentiment readings (contrarian indicators) that show a high degree of fear remains present that should, at some point, have a positive influence on price action.
However, as things currently stand, we have yet to see enough evidence presented to suggest the current market correction has been fully expressed.
On the charts, the major equity indexes closed mostly lower yesterday with only the NDX posting a gain. Market internals were negative as all the indexes closed near the midpoints of their intraday ranges. While no support levels were violated, the near-term trends continue to be negative on all but the DJI and RTY that are neutral.
Bullish inverted head & shoulder patterns on the large cap indexes continue to appear to be developing, but are not conclusive at this point.
Market breadth remains weak with the cumulative advance/decline lines for the All Exchange and NASDAQ negative with the NYSE’s neutral. We did see bullish stochastic crossover signals generated on the DJT, MID, and RTY that offer a glimmer of hope.
Yet, in our opinion, they need to be validated by the charts to become actionable.
The data remains largely neutral except for the new investor sentiment data that shows an increase in crowd fear.
In conclusion, while extremely negative investor sentiment suggests a positive forecast, the charts and bulk of the data have yet to shift enough to suggest the current correction has been completed.
SPX: 4,382/4,466 DJI: 34,086/34,759 COMPQX: 13,234/13,724 NDX: 13,833/14,321
DJT: 14,465/15,026 MID: 2,597/2,668 RTY: 1,980/2,040 VALUA: 9,323/9,496
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.