The only good thing about last week is...that it’s OVER! Markets got smacked around thanks to rising economic concerns and falling technology stocks. The Nasdaq Composite alone had its worst weekly slump since January 2022.
But where do we stand LONGER TERM? Let’s look at the S&P 500 ETF Trust (SPY) for this Monday’s MoneyShow Chart of the Week. I went back one year and included a pair of moving averages – plus secondary indicators like volume, RSI, and stochastics.
Data by YCharts
What do I see? A high-volume break of the 50-day simple moving average. Not good. We also retested the old high recently – and recorded a lower high in RSI in the process. Also not good.
But we have NOT seen a bearish crossover in the moving averages. Plus, prior breaks of the 50-day MA didn’t lead to further aggressive selling. Stocks stabilized and resumed their march higher pretty quickly. The SPY is also getting oversold, which means we’re likely to bounce soon.
One other thing: I’m putting the finishing touches on my market presentation for this week’s 2024 MoneyShow Toronto. While I can’t include it here, one of my slides will cover the mix of green, yellow, and red “lights” my sector and asset class analysis turned up for this market.
In other words, there are some potentially concerning things going on. But it’s not all bad news. That’s another way of me saying, yes, I’m still “bold-ish” when it comes to my outlook on the markets!
