Last Updated: 23/02/2022

Market Update 22.02.22 - More trouble up ahead?

We do not want to have a bullish or bearish bias but rather use technical analysis and inter-market analysis to tell us where the market could be headed next. Let’s get started:

NYMO:SPX NYMO:SPX chart

NYMO (NYSE McClellan Ocsillator) is a market breadth indicator. Previous corrections have shown that they were met with breadth thrust reading of -80 (dashed blue line lower graph). So far this recent down turn can still continue lower and move the negative breadth to the -80 readings before a significant low is in. With the current geopolitical tensions and concern about monetary tightening and a rising yield curve this can spark further fear in the markets.

 

 

SPX %of stocks above 50-day MA

 

SPX-percentage of stock above their 50-day moving averages

 

 

We are seeing that 34% of stocks are holding above their 50 day moving average. In the past readings around 15 proved to be good buying opportunities and stocks moved higher from there. At 34% we still have a way to drop in those readings before a continuation of the correction could be over.

 

VIX Chart: