Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

U.S. Indices Have Room To Protect June Lows

By Declan FallonStock MarketsAug 15, 2022 03:19AM ET
www.investing.com/analysis/us-indices-have-room-to-protect-june-lows-200628487
U.S. Indices Have Room To Protect June Lows
By Declan Fallon   |  Aug 15, 2022 03:19AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Friday was a solid day for indices with the Russell 2000 (IWM) doing enough to push through its 200-day MA despite Thursday's bearish candlestick.

Small Cap trading volume remained seasonally light, but Friday's buying was enough to retain the uptick in On-Balance-Volume and the relative performance advantage over both the S&P 500 and Nasdaq. Technicals are net positive as a result. Aside from the lack of a meaningful pullback (test of support), this is solid action for the index.

IWM Daily Chart
IWM Daily Chart

The Nasdaq also closed above the high of Thursday's bearish candlestick, but if there is a concern it's that On-Balance-Volume has been on a 'sell' trigger since the upside breakout from the small 'bull flag'. Something to keep on for this week, although other indicators are positive. The index remains on track to test its 200-day MA, and if it can repeat what happened in the Russell 2000 it won't prove to be a barrier.

COMPQ Daily Chart
COMPQ Daily Chart

The S&P has been a laggard index given the weak relative underperformance to both the Russell 2000 and Nasdaq. The index is also working off a 'sell' trigger in On-Balance-Volume. If there is a chance for the index to regain its mojo it will be from a break through its 200-day MA. Despite weak On-Balance-Volume, individual buying days for August have skewed more in favor of buyers.

SPX Daily Chart
SPX Daily Chart

Indices have banked a good deal of wiggle room to protect June lows. Shorts will want to see undercuts of the May/June swing highs, but every day that passes makes the possibility of this happening even less as wannabe-buyers will be more likely to act on this test than shorts. 

U.S. Indices Have Room To Protect June Lows
 

Related Articles

U.S. Indices Have Room To Protect June Lows

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Guidothekiller pimp
Guidothekiller pimp Aug 15, 2022 10:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks.
jason xx
jason xx Aug 15, 2022 5:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The lows can certainly be retested but it will need a negative catalyst or 2 to make it happen. It would have to be something pretty bad I think.
BD
BD Aug 15, 2022 3:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bottom was in June. Massive shorts trapped and will be squeezed to bankruptcy. Lots of weak sideline longs will FOMO chase. Big funds buying as well as billionaires like George Soros. Inflation peaked. Oil, commodities, gas, wheat, all down. Saudi Arabia ready to pump oil and Iran nuclear deal will lower oil even more, lowering inflation. Ukraine shipping out food exports now and Crimea exporting 50x normal wheat from stolen Ukrainian grain. Markets are forward looking. Inflation will increase revenue. Limited layoffs as well as inflation stabilizing will increase profit. This means as inflation goes down, despite Feds raising rates slower and lower, the market WILL make new all time highs. Jobs report shows no recessions any time soon. The bear market rally, as many call it, will be renamed "the start of a new bull market" WHEN, not if, new all time highs are made in just months. Buy now or buy later for a lot more money and less shares. You all have been warned.
Ionut Ciucan
Ionut Ciucan Aug 15, 2022 3:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yep...I am thinking the same...and from media tine they start to tilt te balanced towards a new bull run
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email