{"id":64912,"date":"2023-06-21T23:32:51","date_gmt":"2023-06-22T06:32:51","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=64912"},"modified":"2023-06-21T23:32:52","modified_gmt":"2023-06-22T06:32:52","slug":"overbought-threshold-punches-bulls-into-neutral-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2023\/06\/21\/overbought-threshold-punches-bulls-into-neutral-the-market-breadth\/","title":{"rendered":"Overbought Threshold Punches Bulls Into Neutral – The Market Breadth"},"content":{"rendered":"\n

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

The bulls were right at the frontier of overbought trading<\/a>. The threshold defining overbought market breadth held firm and punched sentiment out of bullish territory. While this development is typically bearish, the summer of loving stocks still has uptrends supporting the potential for buying dips at moving averages. This is a time to go neutral and watch how sentiment and price dynamics unfold.<\/p>\n\n\n\n

Perhaps fittingly, this third day of selling finished reversing last week’s post Fed gains just as Powell delivered testimony<\/a> that reiterated everything the market should already know about the Fed’s hawkishness. Post-Fed trading is so often tricky exactly because of the number of fades that can happen. Recall that the market initially sold down on the release of the Fed’s statement on monetary policy. Buyers took over from there until Friday’s open exhausted them. The S&P 500 and the NASDAQ are clinging to the post-Fed intraday low as support.<\/p>\n\n\n\n

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