{"id":60659,"date":"2022-07-19T22:18:26","date_gmt":"2022-07-20T05:18:26","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=60659"},"modified":"2022-07-23T15:58:26","modified_gmt":"2022-07-23T22:58:26","slug":"synchronized-breakout-sends-bear-market-hope-soaring-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/07\/19\/synchronized-breakout-sends-bear-market-hope-soaring-the-market-breadth\/","title":{"rendered":"A Synchronized Breakout Sends Bear Market Hope Soaring – The Market Breadth"},"content":{"rendered":"\n

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

The synchronized breakout looked impossible just yesterday. Apple (AAPL) reversed course with a 2.1% loss that seemed to confirm recent strength was just a bear market tease<\/a>. Rumors spread through the market that Apple will announce a hiring slowdown and reduced spending. Today, all was forgotten as the major indices all enjoyed synchronized breakouts above their respective resistance levels at their 50-day moving averages (DMAs) (the red line in the charts). For its part, AAPL returned to solidifying its own 50DMA breakout by returning yesterday’s losses to investors. Today was a day of soaring bear market hope with a distinct change in market tenor and sentiment.<\/p>\n\n\n

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\"Apple<\/a>
Apple Inc (AAPL) rebounded 2.7% with an inspired participation in the synchronized breakout.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

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

The S&P 500 (SPY) gained 2.8% and closed the day a notch above its 50DMA resistance. The index’s participation in the synchronized breakout looked tentative and needs confirmation with a higher close. Such a move will finally put resistance at the May, 2021 low back in play. The bear market for the S&P 500 could even start to shrink in size in the rear view mirror. Bear market hopes and dreams overflow with that kind of anticipation.<\/p>\n\n\n

\n
\"The<\/a>
The S&P 500 (SPY) jumped 2.8% and punched through its 50DMA resistance. The 5-week high tentatively contributed to the synchronized breakout.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The NASDAQ (COMPQ) participated much more convincingly in the synchronized breakout. The tech-laden index gaped higher above its 50DMA and never looked back. Resistance at the September, 2020 high is back in play.<\/p>\n\n\n

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\"The<\/a>
The NASDAQ (COMPQ) surged 3.1% for a clean 50DMA breakout. The 5-week high put an exclamation point on the synchronized breakout.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The iShares Russell 2000 ETF (IWM) transformed my fortuitous sale of my call option on Monday’s gap open into a failure of faith. Such are the trials of timing options trades. Like the NASDAQ, IWM printed a convincing signature on the contract for the synchronized breakout. The ETF of small caps delivered bear market hope with a 3.5% surge that sliced right through 50DMA resistance.<\/p>\n\n\n

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\"The<\/a>
The iShares Russell 2000 ETF (IWM) sliced through its 50DMA with a 3.5% surge and more support for the synchronized breakout.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n