Neutral Stance For Markets
2022.05.06 10:07
Markets gained on Wednesday and lost yesterday, leaving things in a can/can’t do situation. If I was to stick my neck out I would say this is part of a swing low and not a fresh move lower, but a close below recent lows (not an intraday spike low) would leave me with egg on my face.
The NASDAQ enjoyed an accumulation day yesterday, but today’s losses didn’t rank as distribution despite losing close to 5%. The index is still underperforming relative to the S&P, but the index is oversold.
COMPQ Daily Chart
The S&P is doing a little better than the NASDAQ in that today’s close didn’t close below nearest support. However, it didn’t quite enjoy the same disparity in buying and selling volume for yesterday compared to today. The index did enjoy a relative performance gain over the Nasdaq.
SPX Daily Chart
The Russell 2000 went a little further with a confirmed distribution day today. However, it continues to outperform the Nasdaq and S&P. Despite the losses, On-Balance-Volume is on a new ‘buy’ trigger.
IWM Daily Chart
We have had a sequence of big swing up and down days, but no change – or an indication – to the resulting trend. An up day tomorrow wouldn’t change this, so let’s see how the week finishes.
