{"id":65894,"date":"2023-09-16T18:16:25","date_gmt":"2023-09-17T01:16:25","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=65894"},"modified":"2023-09-16T18:16:26","modified_gmt":"2023-09-17T01:16:26","slug":"stalemate-locks-in-pricing-action-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2023\/09\/16\/stalemate-locks-in-pricing-action-the-market-breadth\/","title":{"rendered":"A Stalemate Locks In the Pricing Action – The Market Breadth"},"content":{"rendered":"\n

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

Last week was a time to avoid staring too hard at the day-to-day pricing action. The major indices were pretty much locked into a stalemate. Two breakouts were followed by two breakdowns. From a wider perspective, a stalemate has effectively been in place since mid-August. Despite my expectations<\/a>, last month’s Jackson hole confab did not spark a major turning point, up or down, in the stock market. However, it is notable that the indices bottomed out following Jackson Hole.<\/p>\n\n\n\n

For a brief moment, midweek, the trading action seemed ready to meet my expectations for a drop into oversold conditions<\/a>. But, just as sharply as the market dropped, it rebounded.<\/p>\n\n\n\n

The market yawned at last week’s inflation data as it remained consistent with the on-going softening. The market also yawned at a looming, historic strike in the U.S. auto industry. Greater attention seemed to go to the interest rate environment. Rates went higher again over the week (I did not have a new short TLT trade). Friday’s triple-witching in the options and futures market resolved into major, high-volume selling pressure. Accordingly, I fully expect some relief buying on Monday which should next resolve into more stalemate trading. I even suspect the stock market will release a collective yawn after Fed Chair Jerome Powell delivers the latest on monetary policy….unless the bond market (surprisingly) reacts strongly to something.<\/p>\n\n\n\n