{"id":60916,"date":"2022-08-08T20:36:52","date_gmt":"2022-08-09T03:36:52","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=60916"},"modified":"2022-08-08T20:48:09","modified_gmt":"2022-08-09T03:48:09","slug":"overbought-without-resolution-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/08\/08\/overbought-without-resolution-the-market-breadth\/","title":{"rendered":"Overbought Without Resolution – The Market Breadth"},"content":{"rendered":"\n

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

The suspense at the overbought threshold<\/a> ended without resolution. In a surprising, and even bizarre, display of performance divergence, small caps led the way higher while the S&P 500 and the NASDAQ ended the day flat. Moreover, IWM and the NASDAQ faded from important resistance at their bear market lines. Additionally, the S&P 500 faded at resistance from its June highs. So while the stock market closed in overbought territory, the market did not provide reassurance or confirmation that it can launch into an extended overbought rally.<\/p>\n\n\n\n

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

The S&P 500 (SPY) faded to a flat close and left the market without resolution. The June highs continue to loom as important resistance for the index.<\/p>\n\n\n

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\"The<\/a>
The S&P 500 (SPY) faded back to a flat close as the struggle with the June highs continues without resolution.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The NASDAQ (COMPQ) generated an even bigger disappointment by fading from resistance at its bear market line. The fade back to flat left the stock market without resolution from the tech side. However, sellers DID highlight the specter of a notable pullback following this critical failure.<\/p>\n\n\n

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\"The<\/a>
The NASDAQ (COMPQ) ran into picture-perfect resistance at the bear market line and faded to a flat close.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The iShares Russell 2000 ETF (IWM) left traders in suspense right at the June high on Friday. IWM resolved that suspense only to fade from resistance at its bear market line. I am looking to take profits on my IWM call spread. The ETF of small caps looks more vulnerable to a pullback from here.<\/p>\n\n\n

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\"The<\/a>
The iShares Russell 2000 ETF (IWM) held a 1.1% gain despite fading from resistance at its bear market line.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n