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No Bounce, Markets Set For More Losses

By Declan FallonStock MarketsSep 28, 2022 03:29AM ET
www.investing.com/analysis/no-bounce-markets-set-for-more-losses-200630379
No Bounce, Markets Set For More Losses
By Declan Fallon   |  Sep 28, 2022 03:29AM ET
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After Friday's close I would have expected some form of bounce - either yesterday or Monday - but this didn't happen. On the (somewhat) plus side, there was no undercut of support of June lows for our monitored indices, although the Dow Jones Industrial Average did undercut such support last Friday and it didn't get much better day with another standard bearish candlestick yesterday.

DJIA Daily Chart
DJIA Daily Chart

The S&P 500 is next on the loser list and it's only hanging on to June support. Given action in the Dow Jones Industrial Average and bearish technicals it's hardly looking likely that we will get a bounce here, but bulls can live in hope.

SPX Daily Chart
SPX Daily Chart

The Nasdaq continues to make inroads in relative performance against its peers, but overall technicals remain problematic (and bearish). It still has room-to-runt to support but little else is positive.

COMPQ Daily Chart
COMPQ Daily Chart

The Russell 2000 accelerated its losses, falling outside of its downward channel as it maps its retest of the June low. It posted significantly higher volume for a day which would measure as accumulation, but it's thin pickings for bulls. Relative performance to its peers took another big knock.

IWM Daily Chart
IWM Daily Chart

For today, bulls really need to see something soon. Monday's candlesticks offered an aggressive long trade which could be managed with a relatively tight stop, but there was no follow through for any of the aforementioned indices. The risk now is that markets will limp below June lows as the Dow Industrials Average has done, then take another acceleration lower. All of this is good news for investors looking to add to their positions as we hit another extreme in investor bearish sentiment and breadth lows.

SPX Daily Chart
SPX Daily Chart

COMPQ Daily Chart
COMPQ Daily Chart

No Bounce, Markets Set For More Losses
 

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No Bounce, Markets Set For More Losses

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Comments (4)
Sergio Valdivia
Sergio Valdivia Sep 28, 2022 8:11PM ET
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lol this guy says the opposite of what will happe , looks like ill use him as reference
John Benkov
John Benkov Sep 28, 2022 6:25PM ET
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Wrong
Andrew Bevan
Andrew Bevan Sep 28, 2022 5:19AM ET
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These things happen...
Saun Melkon
Saun Melkon Sep 28, 2022 4:13AM ET
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The stock market is pure FRAUD: stock prices are based LIES. Instead of debating whether stocks will go up or down, the stock market should be CLOSED. The bankers know how much money you have and what you're betting on -- they can see your bank account and your brokerage account. So the bankers will wrongfoot you REGARDLESS of actual economic data, simply by moving the markers against what the majority investor position is. In other words, the bankers are operating based on INSIDER TRADING which you simply cannot beat. The most likely outcome is; they'll scare you into selling your shares and your commodity positions, and prevent you from making too much money on the short side (largely through extreme volatility and NOT via significantly lower prices). When they can see that 70-80 percent of investors are OUT of the markets and sitting on cash, they'll suddenly lower interest rates and/or inflate the money supply (disguised as benevolent financing of stimulative government spending).
Andrew Bevan
Andrew Bevan Sep 28, 2022 4:13AM ET
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Everyone wants your money. True.. 😐
jason xx
jason xx Sep 28, 2022 4:13AM ET
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Dont be the "majority investor" then and you should win every time by your logic.
Saun Melkon
Saun Melkon Sep 28, 2022 4:13AM ET
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Check out the counterintuitive bond market rally they just initiated in the UK. Supposedly to fight inflation, too...
 
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