Tuesday Oct 5, 20221
We have posted this or similar graphs throughout this summer. It shows the percent of S & P stocks above their moving average from 95% to just over 52 %. Point being the broad market is really falling fast. Yet in the bottom panel the SPX made a new high. The explanation for this is the heavy weighting of the FANG stocks in various index. Those stocks have held up the overall averages. But as one can see the SPX is beginning to fall. See the article on page B 1 of the WSJ today, Tech Selloff Sinks Stock Indexes. FB fell 4.9%. As one fund manager remarks it is hard to offset that downdraft with the other 495 stocks.
Let's take a look.
Amazon is tracing out a big head and shoulders pattern dating back to April.
Facebook is facing mounting scrutiny and a six hour outage Monday. A former executive is leaking information. And the stockholders are leaking profits.
Down 60 points this month.
Google is fast losing via on balance volume as well as price
twitter is off but
twitter is off but NFLX is still strong.
NASD 100 has had some good rallies but they just bounce to the downtrend line.
Bottom Line
We look for a sell off beginning Oct 7-8 witg a fall into Oct 19-20. That should spark a rally with another low due late November.
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