Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Markets Likely Heading Lower

By Michael KramerStock MarketsSep 19, 2022 08:57
uk.investing.com/analysis/markets-likely-heading-lower-200536911
Markets Likely Heading Lower
By Michael Kramer   |  Sep 19, 2022 08:57
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
NDX
-2.01%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
-1.44%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EEM
-0.13%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SPY
-1.44%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
QQQ
-2.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TIP
-0.02%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The S&P 500 and Nasdaq finished the week lower by around 5 and 6%, respectively. It is tough to find many bright spots in this market, especially with what is taking place in real rates.

Options expiration kept things from getting ugly on Friday; with $390 being the big gamma level on the SPY ETF, put owners were anxious to sell their puts going into days end once it became clear the S&P 500 index wasn’t able to break support at 3,840. So that left the market with a late afternoon rally.

SP 500 Index Chart
SP 500 Index Chart

The internals on Friday was pretty bad, though, especially on the Nasdaq, with 451 more new lows on the day than new highs. That was the lowest reading since early July.

NAHL Daily Chart
NAHL Daily Chart

More importantly, the cumulative new high minus new low shows another new low being me on the cumulative count. It is something that I do not view as positive for the market overall and is just another warning sign that new lows are coming to this market sooner than later.

NAHL Chart
NAHL Chart

QQQ Vs. TIP

The QQQ runs about 12 days behind the TIP ETF, and the decline in the QQQ is coming on schedule. Based on the TIP, the QQQ isn’t likely to see much of a rebound anytime soon, either.

QQQ Daily Chart
QQQ Daily Chart

S&P 500

As far as where the market is going this week, I have decided to try and not predict the weekly movements in the market this week because I do not want that to be confused with the conviction I have that market is heading to the June lows, and I believe the high likelihood for them to make new lows. Additionally, the 2008 analog suggests that between now and October 25, the outlook for the S&P 500 and the Nasdaq could be brutally painful.

SPY Chart
SPY Chart

Zoom

Zoom Video (NASDAQ:ZM) is the poster child for stocks making new lows on the Nasdaq, as Zoom, in my observation, has been one of the greatest leading indicators of where the market is going overall. No surprise then that Zoom just made a new low on Friday. That said, Zoom probably isn’t finished falling either, with the following significant support at $76.45 and then $70.

Zoom Daily Chart
Zoom Daily Chart

Emerging Markets

If you want to see the effects a strong dollar is having worldwide, look no further than the EEM ETF, which made a new low on Friday and is probably heading even lower. Support at $38 has broken, and the next support level doesn’t come until $36.45.

EEM Daily Chart
EEM Daily Chart

DocuSign

DocuSign (NASDAQ:DOCU) jumped after its results, but this stock is no different than Zoom, and those gains are melting quickly. Like Zoom, Docusign will probably be added to the stocks on the Nasdaq making new lows very soon. There is no support until $46.85.

DocuSign Daily Chart
DocuSign Daily Chart

DoorDash

DoorDash (NYSE:DASH) is getting ready to travel up the stairway to heaven with that massive descending triangle and sitting just above support at $56.80. DoorDash will probably be another stock added to the growing list of stocks making new lows.

DoorDash Daily Chart
DoorDash Daily Chart

Anyway, this will be a big week, with the Fed and all; good luck.

Original Post

Markets Likely Heading Lower
 

Related Articles

Markets Likely Heading Lower

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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)
Vincenzo Dellboy
Vincenzo Dellboy Sep 19, 2022 9:49
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Great article Michael. Look forward to reading your posts👍
Anthony Riley
AntoCeltman Sep 19, 2022 9:49
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes, I agree, good piece, interesting.
 
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