{"id":59867,"date":"2022-05-23T21:39:42","date_gmt":"2022-05-24T04:39:42","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=59867"},"modified":"2022-05-23T21:45:15","modified_gmt":"2022-05-24T04:45:15","slug":"oversold-ends-with-dimon-push-and-snap-pull-the-market-review","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/05\/23\/oversold-ends-with-dimon-push-and-snap-pull-the-market-review\/","title":{"rendered":"Oversold Ends With A Dimon Push and A Snap Pull – The Market Review"},"content":{"rendered":"\n
\"JP<\/a>
JP Morgan Chase & Co<\/a> (JPM) pushed higher 6.2% with CEO Jamie Dimon spreading cheer about the U.S. economy. JPM closed above its downtrending 20DMA for the first time since March.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

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

“The U.S. economy remains fundamentally strong, despite recent mixed data. Recent developments have increased the risk of a future adverse outcome. Our fortress principles are designed to withstand
any operating environment.”<\/p>JP Morgan Chase & Co (JPM), Investor Day 2022, Firm Overview<\/a>, page 12<\/cite><\/blockquote>\n\n\n\n

Starting from oversold conditions<\/a>, the market was looking for an excuse to rally. Jamie Dimon, CEO of JP Morgan Chase & Co, delivered with Investor Day 2022 commentary. The market was all ears for the soundness of the economy and ignored the prospects for heightened risks. JPM responded with an impressive 6.2% rally. I call this the “Jamie Dimon push” that drove a lot of gains in the stock market. The rally was broad enough to lift the stock market out of oversold trading conditions.<\/p>\n\n\n\n

“Well, the macroeconomic environment has definitely deteriorated further and faster than we expected when we issued our guidance for the second quarter. So even though our revenue continues to grow year-over-year in the second quarter, it\u2019s likely that revenue and EBITDA will come in below the low end of our guidance range.” <\/p>Evan Spiegel, Co-Founder and Chief Executive Officer, Snap Inc (SNAP) at the J.P. Morgan Global Technology, Media and Communications Conference (Seeking Alpha transcript<\/a>)<\/cite><\/blockquote>\n\n\n\n

Spiegel pulled attention right back to risks with the above commentary at the very beginning of his discussion at the J.P. Morgan Global Technology, Media and Communications Conference<\/a>. The heavy dose of economic reality overshadowed the rest of the review about the company’s business and product progress. SNAP lost a whopping 28.4% in after hours trading. The stock looks set to give up the rest of its pandemic era gains. This collapse is a devastating setback for a stock that hit the public market at $17 over 5 years ago. <\/p>\n\n\n\n

\"Snap<\/a>
Snap Inc<\/a> (SNAP) is set to cross the line at its pre-pandemic high.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

SNAP’s warning was bad enough to knock down a swath of related stocks in the after market. Last week’s spotlight on troubled retailers<\/a> now turns to the health of the advertising market. Even Facebook lost 7%. Thus, the stock market looks set to sink right back into oversold trading conditions as economic concerns mount all over again.<\/p>\n\n\n\n

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

The S&P 500 (SPY) jumped 1.8% as financials led the way higher. The automatic buying at and around the bear market line worked out one more time. Per plan, I promptly took profits on my SPY shares. I strongly suspect the S&P 500 will not hold on a third test of this obvious and clear line of support. The index now needs buyers to step into whatever SNAP-related weakness greets the stock market at tomorrow’s open. Overhead resistance awaits with a convergence from the downtrending 20-day moving average (DMA) (the dotted line below) and the May, 2021 low. <\/p>\n\n\n\n

\"The<\/a>
The S&P 500<\/a> (SPY) broke through the bear market line for a brief moment. Buyers came to the rescue and closed the index flat on the day.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The NASDAQ (COMPQX) gained 1.6% yet failed to clear Friday’s intraday high. Still, the tech-laden index could have a date with overhead resistance before weakness returns. If Carter Braxton Worth’s technical observations hold, the NASDAQ (100) will lead a continuation of the bounce out of oversold conditions… or the S&P 500 will lead the way right back down.<\/p>\n\n\n\n

\n

Perhaps the single most important chart in the market.
We\u2019re thinking it bounces here.$NDX<\/a> $SPX<\/a> $QQQ<\/a> pic.twitter.com\/1NGT3anFSk<\/a><\/p>— Carter Braxton Worth (@CarterBWorth) May 23, 2022<\/a><\/blockquote>