{"id":60832,"date":"2022-08-03T14:03:11","date_gmt":"2022-08-03T21:03:11","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=60832"},"modified":"2022-08-04T12:34:25","modified_gmt":"2022-08-04T19:34:25","slug":"market-breadth-last-did-this-17-months-ago","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/08\/03\/market-breadth-last-did-this-17-months-ago\/","title":{"rendered":"Market Breadth Last Did This 17 Months Ago"},"content":{"rendered":"\n

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

Market breadth was last this high 17 months ago. At that time, my favorite technical indicator was on its way down as a part of another buy-the-dip moment for the pandemic-inspired rally in the stock market. This time, market breadth is sitting right on top of the threshold of overbought conditions. The S&P 500 (SPY) is higher but the NASDAQ (COMPQ) is lower than those price levels 17 months ago. Both indices are enjoying impressive rallies. The price action has reached a critical juncture: lower from here signals a potential bearish reversal and higher from here could launch a fresh bullish phase to much higher prices.<\/p>\n\n\n\n

If Apple (AAPL) is any indicator, the market “wants” to take the bullish door higher and overcome the rally fatigue<\/a> the painted the start of this week. AAPL soared higher with a 3.8% gain and confirmed its breakout above the 200-day moving average (DMA) (the blue line below). Is AAPL ready to continue leading the way in this “what recession?<\/a>” mode?<\/p>\n\n\n

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\"Apple<\/a>
Apple Inc (AAPL) confirmed its 200DMA breakout with a 3.8% gain.<\/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 1.6% and confirmed its breakout above the May, 2021 low. This bullish move is overshadowed by looming resistance from the June highs. A breakout above the June highs would put 200DMA resistance into play.<\/p>\n\n\n

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\"The<\/a>
The S&P 500 (SPY) confirmed its breakout above the May, 2021 low with a 1.6% gain. Yet, the index is still short of the June high.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The NASDAQ (COMPQ) pushed the June highs further into the rear view mirror. The tech laden index’s 2.6% gain brought the price action within sight of the bear market line. Note well how important this line was earlier in the year as support and then resistance in late April and early May. <\/p>\n\n\n

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\"The<\/a>
The NASDAQ (COMPQ) finished erasing its loss from May and approached ever closer to its bear market line.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The iShares Russell 2000 ETF (IWM) just continues to creep higher. The ETF of small caps is ever closer to challenging its June high.<\/p>\n\n\n

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\"The<\/a>
The iShares Russell 2000 ETF (IWM) continued to inch its way closer to its June high with a 1.5% gain.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n