stock-market-outlook-intraday-midday

The futures before the open were poor to start the day with investors focused on a “worst case” scenario for the latest covid-19 variant, now named omicron. However testimony by Fed Chair Powell during which he commented on how omicron was not “taken into account” in their projections or “plans” as well as comments about speeding up the tapering, were too much for investors to handle. They sold stocks pushing the market to a new low over the past 3 trading days.

The outlook now among investors seems to be it is better to error on the side of caution and take whatever profits they have and move to the sidelines while the market “sorts things out”.

New York Stats:

Volume is heavier with 2.7 billion shares traded as the lunch hour ends.

New lows are at 253 while new highs are just 23.

But volume is heavily to the downside with 91% of all volume falling and just 8% rising.

80% of all stocks are falling on New York.

NASDAQ Stats

Volume is also very heavy on the NASDAQ with 3.4 billion shares traded and a huge 572 new 52 week lows so far today. There are just 29 new highs.

Volume is 70% to the downside and 28% to the upside, somewhat better than the S&P.

75% of all stocks are falling and just 16% are climbing.

Outlook:

The S&P broke through 4600 fairly easily today but normally we will see another attempt to revisit it as 4600 was good support. The outlook though is for a negative close below 4600. We should see a spike this afternoon but I am expecting heavy selling in the final hour or more likely half hour today.
The NASDAQ is still holding a tiny gain for November. It will close strongly negative as well today.
Wednesday morning should see a dip further but then some buying as the index is once more oversold. However I am not expecting a rally such as was seen on Monday. With two days of selling out of the past 3 trading days, investors will need more time to see if the selling is over before committing to a rally such as we saw on Monday.
TSX Composite Index – Canadian Stock Market Outlook
For those who follow the smaller Canadian Market, the TSX is down 426 points to 20,722 back below 21,000. The index has been unable to convincingly move above 21000. That is beginning to look more and more like a topping action. We will probably see another move above 21,000 when this latest panic ends but the chance the index will continue higher and break through 22,000 is slim to nil by year end.
Volume is very high at 314 million shares traded.  Of volume only 6% is to the upside. 91% of all volume is being traded lower.
73% of stocks are falling with just 15% rising.
Canadian banks are weaker and put premiums are rising higher than they have been for well over a month on the banks. I am watching for opportunities in the big 5 banks.
The outlook is bearish with the index closing below 21000 today. Tomorrow looks poor as well. We could see a spike higher to start the day simply because the Canadian stock market is oversold. However more selling seems apparent for Tuesday after an initial spike early morning expected for Wednesday.
Enjoy your afternoon! Try to stay calm and prepare a list of stocks to consider buying or selling puts against once this latest sell-off ends which could be as early as this week.


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