Why Oversold Matters: The Jobs Dip and Rip – The Market Breadth

dip and rip (Credit: Google Workspace Labs, AI-generated)

Stock Market Commentary The economist “consensus” expectations for September job growth missed the mark by a mile, 336,000 actual versus 170,000 projected. These big misses represent the on-going struggles of conventional economics to understand the dynamics of today’s post-pandemic economy. Initially, the good jobs news frightened financial markets which think of good news as bad … Read more

Small Cap Stocks Uncork Oversold Conditions – The Market Breadth

uncork (Source; Google Workspace Labs, AI-generated)

Stock Market Commentary The last quarter of the year and the third of the stock market’s most dangerous months started off with a swirl of signals. Each of the three major indices exhibited its own behavior. Small cap stocks plunged and uncorked oversold trading conditions. The S&P 500 clung to flatline. The NASDAQ happily shot … Read more

Can An Oversold Bounce Prevent An October Swoon? – The Market Breadth

prevent October swoon (Credit: Google Workspace Labs - AI generated)

Stock Market Commentary The sentiment shifts following the bounce from oversold conditions swung from bullish and encouraging to tantalizing and disappointing. The stock market has a precarious setup going into a likely October swoon. The prospects for the current oversold bounce to prevent the October swoon hinge on a swirl of technical signs and fundamental … Read more

Oversold Bounce Sends Signs of Life for Stocks – The Market Breadth

Oversold Bounce Sends Signs of Life for Stocks (Credit: Google Workspace Labs, AI-generated image)

Stock Market Commentary Get used to the sentiment shifts. One day the stock market went oversold and over hard. The next day, an oversold bounce shows signs of life for stocks. In particular a classic bottoming signal came in the form of the “hammer” candlestick. Together, the bounce from oversold territory and the bottoming hammer … Read more

Oversold Trading Awaits – The Market Breadth

Oversold

Stock Market Commentary The Federal Reserve helped unlock the stalemate in pricing action that stalled the bearish divergence tugging the market toward oversold trading conditions. Fed Chair Jerome Powell once again told financial markets the Fed remains as hawkish as ever. Expectations contracted for rate cuts next year, interest rates soared, and stocks plunged. While … Read more

Tech Stocks Help Press the Limits of A Sentiment Shift – The Market Breadth

press the limits (Credit: Men Pushing Loaded Truck - Phulbagan - Kolkata 20180223161038 by Biswarup Ganguly on Flickr)

Stock Market Commentary Jackson Hole did not provide the market moving spark that I expected. Instead, soft economic news delivered the decisive interpretation of future monetary policy required to provide a fresh catalyst for stocks. The bullish spark caught me flat-footed as I was leaning into imminent oversold trading conditions. Fortunately, the sentiment shift was … Read more

Stocks Stumbling With Looming Oversold Conditions – The Market Breadth

looming oversold (Credit: Looming Thunderstorm, by Corey Wagehoft on Flickr)

Stock Market Commentary Stocks stumbled their way through a week fraught with hopes and fears for Fed Chair Jerome Powell’s speech at Jackson Hole. With looming oversold conditions, the most significant technical event occurred with a bearish engulfing right under important resistance levels for both the S&P 500 and the NASDAQ. The relief buying that … Read more

Overbought Conditions Slip Into An Apple Topping – The Market Breadth

apple topping (Credit: https://commons.wikimedia.org/wiki/File:2021-11-26_18_02_07_An_apple_pie_with_one_slice_removed_in_the_Dulles_section_of_Sterling,_Loudoun_County,_Virginia.jpg Famartin https://creativecommons.org/licenses/by-sa/4.0 CC BY-SA 4.0, via Wikimedia Commons

Stock Market Commentary A week ago, buyers did their best to push against topping stock indices by restarting overbought conditions. That overbought period lasted just 3 days as a Fitch downgrade of U.S. Treasury debt freshly cooled the summer of loving stocks. The resulting selling confirmed topping conditions and greased the skids of the stock … Read more

Buyers Push Against Topping Indices, Restart Overbought Conditions – The Market Breadth

push (Credit: Uphill Push by the_alien_experience on Flickr)

Stock Market Commentary The stock market delivered a gift on Friday as I scrambled to de-risk following the Bank of Japan’s drama on monetary policy. I braced for selling into bearish pressure and instead was pleasantly greeted by a broad push higher for stocks from the open. After the dust settled on the day, I … Read more

Now Overbought, the Summer of Loving Stocks Stares Down the Fed – The Market Breadth

stares down (Credit: Animal Kingdom - The Stare Down by Jeff Krause Photography on Flickr)

Stock Market Commentary On Thursday, good economic news scared Wall Street yet again. Initial jobless claims came in well below “expectations” and set off a cascade of reactions. Interest rates shot up and the stock market dropped down. The stubborn strength of the labor market allows the Federal Reserve to stay hawkish and keep its … Read more