{"id":59044,"date":"2022-02-18T21:22:42","date_gmt":"2022-02-19T05:22:42","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=59044"},"modified":"2022-02-19T16:42:42","modified_gmt":"2022-02-20T00:42:42","slug":"a-promising-divergence-between-anxiety-breadth-in-stock-market-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/02\/18\/a-promising-divergence-between-anxiety-breadth-in-stock-market-the-market-breadth\/","title":{"rendered":"A Promising Divergence Between Anxiety and Breadth in the Stock Market"},"content":{"rendered":"\n

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

The market feels heavy and bearish. Yet, the major indices continue to bounce between the edges of their “churn zones.”<\/a> Last week’s churn delivered a surprising ray of light tantalizing the dour sentiment. While the S&P 500 and the NASDAQ closed with a second straight week of losses, the major breadth indicators closed flat for the week. Moreover, the volatility index barely eked out a gain for the week. These signs point to promising green shoots trying push through the growing angst and anxiety engulfing financial markets<\/a>. The unanswerable question remains what will markets actually do if the worst fears become reality?<\/p>\n\n\n\n

The Stock Market Indices<\/strong><\/h2>\n\n\n\n

The S&P 500 (SPY) lost 0.7% for the day and 1.6% for the week. The intraday low missed the closing low of the year by a mere point. The sellers maintained control of the narrative by confirming overhead resistance at the converged 20 and 200-day moving averages (DMAs). Still, sellers have yet to score a bearish breakdown below the churn zone. Every moment spent inside the churn zone is a promising step in the direction of exhaustion of anxiety and angst.<\/p>\n\n\n\n

\"The<\/a>
The S&P 500<\/a> (SPY) suffered a second week of losses but held on to support from this year’s closing low.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The NASDAQ (COMPQX) is worse off than the S&P 500 relative to overhead resistance levels. However, the tech-laden index sits higher above support from the bottom of the churn zone. That achievement is about as promising as one can hope for under the circumstances.<\/p>\n\n\n\n

\"The<\/a>
The NASDAQ<\/a> (COMPQX) lost 1.2% on the day and descended toward the bottom of its churn zone.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The iShares Russell 2000 ETF (IWM) is pulling off the promising feat of staying out of the bear market zone. The ETF of small caps just barely closed below its 20DMA support and looks close to setting up a churn zone above the bear market zone. IWM lost 1.0% for the week and 0.9% on the day. A 2.6% setback on the previous day locked in the slide into a negative week. <\/p>\n\n\n\n

\"The<\/a>
The iShares Russell 2000 ETF<\/a> (IWM) lost 0.9% and slid just below 20DMA support. This short-term trendline has flattened out for now.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n