Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Weak Recovery Doesn't Offset Wednesday's Losses

By Declan FallonStock MarketsMay 14, 2021 02:35AM ET
www.investing.com/analysis/weak-recovery-doesnt-offset-wednesdays-losses-200580024
Weak Recovery Doesn't Offset Wednesday's Losses
By Declan Fallon   |  May 14, 2021 02:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The selling we have seen had much in common with that of February's, and because of that, what we are looking at is the development of trading ranges which will maintain a neutral outlook until there is a breach of March swing lows. 

The NASDAQ is perhaps the most vulnerable given prior strength, but it has started to underperform relative to the Russell 2000 as momentum moves into bearish territory but is not yet oversold.

COMPQ Daily Chart
COMPQ Daily Chart

The S&P recovered from its 50-day MA but the break of trendline will take more than one day to resume the prior trend. The index is outperforming the Russell 2000 despite the losses. 

SPX Daily Chart
SPX Daily Chart

The Russell 2000 has been range bound since February and Thursday's recovery to Wednesday's losses occurred within the context of this trading range. Until there is a break from this range there is little to get excited about.

IWM Daily Chart
IWM Daily Chart

Selling has stolen the headlines, but the NASDAQ and Russell 2000 have been range bound for most of 2021, until this range is broken we won't know the direction of the trend.

Weak Recovery Doesn't Offset Wednesday's Losses
 

Related Articles

Weak Recovery Doesn't Offset Wednesday's Losses

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 (1)
Jeff Page
Jeff Page May 14, 2021 2:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If we test ~ 3950 how far below that is the next support level? From a broad market standpoint, I see only volatility and no correction has yet happened. If intrest rates stay muted how high do we go? Can the 10 year maintain it's benign relationship with SPX? Is there any model that can be used to determine how long it will take the US economy to absorb excess cash that has been thrown at a pandemic?
 
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