The video in this report is only accessible to members
The video in this report is only accessible to members

The worse-than-expected Jobless Claims number Thursday (211k vs. 195k expected) caused a big Treasury rally but failed to lead stocks higher, given the big decline seen in bank stocks led by $SIVB and $SI.

S&P fell ~2% on the day, and broke last week’s lows near 3928.  DJIA also broke down to the lowest levels of the year.  However, $QQQ showed positive divergence and failed to show a similar move back to new monthly lows, which is a positive.

While the decline in Financials looks quite serious, other sectors like Technology and Industrials which had shown above-average strength over the last month, were not nearly as adversely affected. 

Breadth finished at greater than 4/1 negative. However, volume flowed at a nearly twice as heavy a rate into Declining vs Advancing issues, registering an Arms Index (TRIN) at 1.9.  Readings above 2.0 normally signal capitulation that translate into lows being right around the corner.

Overall, my cyclical model bottoms next Wednesday, March 15th.  While many might think a breach of the 200-day moving again swings trends back to bearish, I’m confident that the Technology, Discretionary, and Industrials resilience coupled with a good amount of Small-cap and Mid-cap...

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 :)