{"id":59270,"date":"2022-03-22T21:01:39","date_gmt":"2022-03-23T04:01:39","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=59270"},"modified":"2022-03-23T00:02:05","modified_gmt":"2022-03-23T07:02:05","slug":"bullish-signals-hard-to-believe-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/03\/22\/bullish-signals-hard-to-believe-the-market-breadth\/","title":{"rendered":"The Bullish Signals That Are Hard to Believe – The Market Breadth"},"content":{"rendered":"\n

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

The stock market continued its quest<\/a> to convince us that the world is getting or soon will get a lot better. Perhaps the market is somehow feeding off the definitive hawkishness from the Federal Reserve<\/a>. Whatever the explanation, market breadth expanded to levels last seen 4 months ago. The rally demonstrates broadly based buying in the stock market. This strength culminated in bullish signals that are hard to believe all things considered. The S&P 500 managed to break out above its 200-day moving average (DMA) (the blue line in the chart below) – a very bullish event. The NASDAQ cleared its downtrending 50DMA (the red line) for the first time since the beginning of the year. These bullish signals are happening even while the volatility index remains elevated. The currency market tops off the bullish chorus. The Australian dollar versus the Japanese yen (AUD\/JPY) is now in a parabolic<\/a> push.<\/p>\n\n\n\n

I am freshly taken aback by this rally given Fed Chair Jerome Powell started this week with a staunch defense of his new hawkish religion. He delivered a pivotal speech that is likely the signature moment of his career as Fed Chair. I reviewed this speech in “Transitory Complete: Fed Chair Jay Powell Gets Comfortable With the Inflation Hawks<\/a>.”<\/p>\n\n\n\n

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