{"id":56584,"date":"2021-04-24T17:58:17","date_gmt":"2021-04-25T00:58:17","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=56584"},"modified":"2021-04-25T09:23:38","modified_gmt":"2021-04-25T16:23:38","slug":"t2108-update-stock-buyers-snapped-back-failed-to-crack-important-downtrend","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/04\/24\/t2108-update-stock-buyers-snapped-back-failed-to-crack-important-downtrend\/","title":{"rendered":"Stock Buyers Snapped Back But Failed to Crack An Important Downtrend – Above the 40 (April 23, 2021)"},"content":{"rendered":"\n

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

The week began with two straight days of selling for the stock market. Almost everything was in place for a real pullback. Although the S&P 500 (SPY) was less than 2% off its all-time high, my favorite measure of breadth in the stock market, AT40 (T2108), the percentage of stocks trading above their respective 40DMAs, plunged and reconfirmed resistance at its steepest downtrend line. At the time, I pointed out the tension<\/a> between the combination of a bearish confirmation versus a potentially bullish overreach by sellers. The buyers snapped back and won the battle. Stock buyers rallied the stock market two of the next three days. Still, they failed to crack the important downtrend that looms over AT40. That downtrend, and a less steep one over that, keep me skeptical about the health of the current rally.<\/p>\n\n\n\n

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

The S&P 500 (SPY) ended the week with a 1.1% gain on Friday. At one point, the index challenged its all-time high as if to tease anyone who went short the market last week. While short-term bearish bets should stop out at a higher close, I will maintain my SPY puts. If the rally continues higher from here, those put options stay in place as hedges to trade against. <\/p>\n\n\n\n

\"The<\/a>
The S&P 500<\/a> (SPY) <\/em>churned for the week and almost closed out with an all-time closing high.<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The NASDAQ (COMPQX) churned like the S&P 500, but it gained a slight upward bias. The tech-laden index stopped just short of the previous week’s closing high. The all-time high is just around the corner from that point.<\/p>\n\n\n\n

\"The<\/a>
After starting the week with two days of selling,<\/em><\/strong> the <\/b>NASDAQ<\/a> (COMPQX) <\/b>drifted higher with a slight upward bias<\/em><\/strong>.<\/figcaption><\/figure><\/div>\n\n\n\n