Key Takeaways

  • Monday’s breakdown has taken SPX, QQQ and DJIA to lowest since at least a year
  • Microsoft’s breakdown of $270 a definite headwind for Equities given its representation
  • Sentiment has been bearish for a few weeks, yet no definite evidence of capitulation  
The video in this report is only accessible to members
The video in this report is only accessible to members
The relentless selloff has continued as this new week has gotten underway, and SPX has now officially broken February intra-day lows on a closing basis, while the DJIA has joined the SPX and QQQ in closing at the lowest levels in more than a year. While sentiment has turned bearish using some metrics, technical structure remains negative, and daily momentum gauges like RSI are not oversold. Bottom line, it’s early to expect a meaningful low. While trading lows might materialize sometime this week, a 100% equality price projection in the decline from late March peaks should allow prices to get down to at least 3950 without much trouble, with 3815 also having significance. My 2022 Outlook call of SPX-3815 into June before a meaningful bottom remains on track and, at present, it looks premature to expect any sort of long-lasting low until real capitulation gets underway. At present, this still looks early with the VIX under March highs, while inflows to speculative ET...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)