{"id":61264,"date":"2022-09-10T17:35:00","date_gmt":"2022-09-11T00:35:00","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=61264"},"modified":"2022-09-10T17:42:22","modified_gmt":"2022-09-11T00:42:22","slug":"synchronized-breakout-flips-script-on-sentiment-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/09\/10\/synchronized-breakout-flips-script-on-sentiment-the-market-breadth\/","title":{"rendered":"A Synchronized Breakout Flips the Script On Sentiment – The Market Breadth"},"content":{"rendered":"\n

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

The confluence of market-moving news the last two days of the week resolved into a stock market looking incrementally healthier. A synchronized breakout above resistance at respective 50-day moving averages (DMAs) flipped the script on the negative sentiment that dominated trading going into last week. While weakness in the U.S. dollar from Bank of Japan jawboning<\/a> and a reiteration from Powell about the Fed’s anti-inflation determination<\/a> occupied the headlines, a long-time reader brought economic news to my attention that I consider most important of all.<\/p>\n\n\n\n

The Institute for Supply Management (ISM) reported a services PMI (Purchasing Managers Index) that further contradicted the notion that the U.S. economy is already in the recession that Wall Street wants<\/a>. After 3 monthly declines, the PMI increased two straight months with August’s data<\/a>. With pricing pressures apparently easing, “peak Fed” sentiment could follow the Fed’s anticipated 75 basis points hike later this month. If so, the market could enjoy a (surprising) goldilocks scenario of an economy that managed to survive aggressive tightening with the worst of rate hikes in the rearview mirror. Even if new economic trouble lies ahead, near-term anticipation of “peak Fed” could be sufficient to keep the market floating higher going into the September Fed meeting.<\/p>\n\n\n\n