{"id":53545,"date":"2020-07-04T20:55:46","date_gmt":"2020-07-05T03:55:46","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=53545"},"modified":"2020-07-04T21:56:28","modified_gmt":"2020-07-05T04:56:28","slug":"t2108-two-speed-stock-market-on-edge","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2020\/07\/04\/t2108-two-speed-stock-market-on-edge\/","title":{"rendered":"A Two-Speed Stock Market Remains on Edge – Above the 40 (July 2, 2020)"},"content":{"rendered":"\n

Stock Market Statistics<\/strong><\/h2>\n\n\n\n

AT40<\/strong> = 53.9% of stocks are trading above their respective 40-day moving averages (DMAs) (2-month low)
AT200<\/strong> = 25.6% of stocks are trading above their respective 200DMAs
VIX<\/strong> = 34.7
Short-term Trading Call<\/strong>: neutral<\/p>\n\n\n\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

The damage in the stock market<\/a> the previous week looked strong enough to eventually take trading conditions toward or to oversold levels. The market was on edge, and the S&P 500 (SPY) in particular looked ready to break down. <\/p>\n\n\n\n

Instead, the following week a rebound started right from the open with buyers taking the index right to its 200-day moving average (DMA). There was almost no hesitation the rest of the week. On Wednesday, the major indices finished a complete flip from short-term downtrends to short-term uptrends (recall that I ignore the Dow<\/a>).<\/p>\n\n\n\n

\"July
July started with short-term trends almost all green amid very mixed bear\/bull signals.
Source: SwingTradeBot.com<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The stock market exhibited little hesitation for the entire week even as underlying signals still seemed to lean negatively. The above graphic shows that even on Wednesday decliners far outpaced advancers with bearish technical signals running well ahead of bullish technical signals. The new large gap between new highs and new lows comes from a true two-speed market.<\/p>\n\n\n\n

The Stock Market Indices<\/strong><\/h3>\n\n\n\n

The S&P 500 (SPY) bounced relatively comfortably from 200DMA support. Its 50DMA is close behind to further fortify support levels. Still, the index is on edge as it rallied to and then faded from the ~3160 level. This level has delivered firm resistance since the big gap down on June 11th. This is an index still on edge.<\/p>\n\n\n\n

\"The<\/a>
The S&P 500 (SPY) gained 0.5% after fading into a close right at recent resistance.<\/figcaption><\/figure><\/div>\n\n\n\n