Weak Bounce Does Not A Bottom Make; Near-Term, Bears Still Hold The Advantage
2022.06.16 07:30
On Wednesday, buyers stepped up to the plate and recovered some of Tuesday’s losses, but buying volume yesterday was down on Tuesday’s for some indices—and there were some losses end-of-day to keep the gains in check. I wouldn’t expect much from indices today. But slow, steady gains over coming days would be good.
COMPQ Daily Chart
The S&P 500 did manage to register an accumulation day but technicals are net bearish. If there is going to be a ‘bear trap’ it will need to do a lot more. Bears hold the advantage in the near term.
SPX Daily Chart
The Russell 2000 (via IWM) finished with a ‘spinning top’, which is a more neutral outlook for the index. With the undercut of the May lows in the S&P and NASDAQ, the likelihood for the same happening here is increased. Yesterday’s close also saw a loss in relative performance to the aforementioned indices.
IWM Daily Chart
We can’t say a whole lot about Wednesday’s action. The candlesticks were neutral and volume was on the light side. This has the look of a weak bounce. To reverse this we have to see an increase in buying volume and ideally, wide range candlesticks. Lets see what Thursday brings.
