{"id":61476,"date":"2022-10-01T15:42:00","date_gmt":"2022-10-01T22:42:00","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=61476"},"modified":"2022-10-02T09:11:22","modified_gmt":"2022-10-02T16:11:22","slug":"somber-september-puts-last-pandemic-era-gains-at-risk-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/10\/01\/somber-september-puts-last-pandemic-era-gains-at-risk-the-market-breadth\/","title":{"rendered":"A Somber September Puts the Last Pandemic-Era Gains At Risk – The Market Breadth"},"content":{"rendered":"\n

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

September was about as somber as it gets for financial markets. The S&P 500 lost 9.3% for the month which falls well below both the median and average (negative) historical performance for the index<\/a>. With the June lows breached, the pandemic-era gains for the S&P 500 and the NASDAQ are now at risk. The S&P 500 is clinging to a 5.7% gain above its pre-pandemic high. The NASDAQ holds a remaining 8.2% gain above its pre-pandemic high. The iShares Russell 2000 ETF finished reversing its pandemic-era gains at its May lows and is below the pre-pandemic lows yet again. In other words, the Federal Reserve giveth, and the Federal Reserve taketh away. The U.S. central bank, in parallel with other major central banks, is rapidly draining the liquidity and the enthusiasm that they eagerly stoked in response to the pandemic-driven economic crisis. <\/p>\n\n\n\n

Apple Inc (AAPL) is 7.4% of SPY<\/a>. America’s favorite stock is 14.0% of QQQ<\/a>. This #1 ranking in these major indices makes AAPL’s fate an important part of the market’s struggle to land a bottom deep here in oversold territory. Rumors about production halts and two major analyst downgrades slammed AAPL to the tune of an 8.1% loss for the week. While the market escaped AAPL’s woes on Wednesday with a 1.9% rally on the S&P 500, the subsequent selling in AAPL proved too much to bear. AAPL is finally at risk for a test of its June lows…which means the major indices could go even lower before finding a bottom in the near-term.<\/p>\n\n\n

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Investors abruptly soured on Apple Inc. (AAPL). The stock is now in a race to test its June low.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

In a sign of the times, the British pound (GBP\/USD) delivered a classic display of a snapback from a trading extreme. The Invesco CurrencyShares British Pound Sterling Trust (FXB) started the week with a steep 2-day plunge. The collapse spooked the Bank of England (BoE) enough to force them to temporarily pause monetary tightening to buy<\/strong> British bonds (gilts)<\/a>. The intervention reversed the market’s mood and helped reverse most of FXB’s loss for the week. Still, the British pound remains at risk as the overall downtrend is as strong as ever.<\/p>\n\n\n

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\"The
The Invesco CurrencyShares British Pound Sterling Trust (FXB) rebounded sharply from a near collapse. It still must contend with an on-going, persistent downtrend.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n