55 stocks below the 50 day moving average
71 stocks below the 200 day moving average
You’re heaviest weighted stocks need to acquire or maintain bullish sentiment above the dynamic 50 moving average if there’s going to be any upside potential.
The overall Market sentiment remains very bearish however there was a little bit of light today in the NASDAQ 100 Futures if you recall from our video early this morning around 6:30 a.m. We looked at the NASDAQ 100 Futures and we spoke about the 14,000 level and the 13,970 as a potential zone for buying pressure. With the next leg lower being at the low of April 12th at 13,902, which aligns with the 61. 80% Fibonacci number.
For today, there is a chance of the markets putting in a higher low with a morning star pattern, but we will need to see how the price action plays out through the evening and overnight into the market open.
If you look at the major indexes you will see that they are under the 50-day moving average and a 200-day moving average with the 50-day moving average now playing as resistance on the NASDAQ 100 and the Dow Jones Industrials as well as the Russell 2000. It looked like the semiconductors were going to try and make a run up towards the 50; however, the ended up closing the upper Gap and then closing below yesterday’s price action.
Sectors and Housing Market
If we turn our attention to the sector spiders we can see a lot of weakness in the home builders as well as the communications, retail, consumer discretionary, information technology, and the financials. I’ve been speaking about the financials on a few videos and have continued a bearish sentiment due to the potential marginal risk in the economy and how inflation is impacting not only consumers but household incomes, which brings me to the part surrounding acquiring of loans. With housing rates continuing to rise it makes it a lot harder for households to refinance their homes and it’s even more behavioral when new homeowners look at the housing prices and then consider how much more mortgages will be today has inflation and interest rates continue to rise at the same time, thus; reducing the amount of new mortgage applications and buyers in general.
As I look through some of the data points in the market today the continued trend of New Yearly Lows continues to outpace the day before. Oil and gas headstrong days today while the major indexes experienced a bit of a whipsaw after running to the upside due to the fact the Federal Reserve represented the CPI numbers as Core, which basically removed some of the critical pieces of the CPI numbers.
We will continue to watch the Futures markets; especially around the Nasdaq-100 to see if we get that bullish upward pressure helping to create a higher low and perhaps ascending back towards the 14,317 and the 14,642. In the event the 13,831 should break that would then become resistance and the next Target would be around 13,440.