Today was a typical blow-off day in a major correction. With stocks collapsing early morning shortly after 10:00 AM and then plunging for a second time over the lunch hour, a lot of remaining investors would have been shaken out of their positions which volumes does show. However the noon plunge ended up being the day’s low and buyers raced back to push the SPX index back over the 200 day moving average by the close. A positive end for the SPX and a bigger rally in the NASDAQ saw huge intraday losses fully recovered with the NASDAQ closing up 86 points. Perhaps even more dramatic the Dow Jones index collapsed over 1100 points by noon hour and ended the day up 99 points.
Following a day like Monday, it is worthwhile to review the Market Breadth Indicators to see what is happening in the market with the majority of stocks.
Here is the Market Breadth Indicator outlook for SPX and the NASDAQ for Tue Jan 25 2022 as well as Wed Jan 26. There are also comments on handling trading over the next couple of weeks.
The market breadth indicator analysis and outlook is for FullyInformed Members.
Market Breadth Indicator – Advance Decline Numbers Outlook For Tue Jan 25 2022
Wednesday saw a monster relief rally in the final hour and a half of trading. The Market Breadth Indicator outlook for Thu May 5 2022, ....... Read More
Friday saw all indexes stage a large decline with selling dominating stocks. Few stocks were spared from the decline on Friday which only saw a ....... Read More
Wednesday ended negative for both the S&P and NASDAQ but the Market Breadth Indicators are worth reviewing before trading resumes on Thursday. Tesla’s earnings may ....... Read More
Tuesday saw a strong rally adding 70 points to the index resulting in the best point gain since March 16. Unfortunately after hours Netflix stunned ....... Read More
Thursday saw investors give back all of Wednesday’s rally for both the S&P and NASDAQ. It was a particularly bearish day. Here are the Market ....... Read More
Tuesday saw a rally attempt which lasted half an hour. From there sellers chased buyers lower until by the close the S&P was at its ....... Read More
Monday saw very steady losses with the majority of stocks on both New York and the NASDAQ falling. Semiconductors in particular as being hard hit ....... Read More
Friday saw slightly losses on the S&P but another major down day for the NASDAQ. The past week was the worst for the NASDAQ since ....... Read More