Jump to content

Another market selloff sees the S&P 500 post its worst day since June 2020


Recommended Posts

Target has joined the long list of retailers showing decreasing profit margins on the back of increasing input costs, which factored in to already weakening sentiment in equity markets.

 

 

Daniela Sabin Hathorn | Presenter and Analyst, London | Publication date: Thursday 19 May 2022 

The S&P 500 posted its worst session since June 2020 with the tech sector taking the brunt of the losses, while the Nasdaq shed another 4% on Wednesday.

Wall Street close

Let's take a look now at the Wall Street close in yesterday's session - really negative sentiment they're pricing in for the markets as you can see.

The Dow Jones Industrial Average down about 3.57%, shedding over 1160 points throughout the session. The S&P 500 had its worst day since June 2020, down just above 4% there. And the Nasdaq once again taking the heavy brunt of the losses, down about 4.73% throughout the session.

Technical analysis

Let's take a look now at some charts of this early US trade, because the negativity started yesterday before the opening bell.

We did have earnings from US retailer Target coming out throughout the morning. And like Walmart, the day before, Target announced that sales were up, but profits were down thanks to increasing costs and those tightening margins that we have seen in the markets.

Now, it was quite a negative sentiment, but it is a bit of a correction of what we've seen throughout the pandemic. We've seen a lot of evaluation in a lot of these shares, especially tech shares, throughout the pandemic and it's kind of a situation where we've seen that decline and getting to more sustainable levels.

As you can see here, the S&P 500 now really undoing those gains that we've seen steadily over the last week heading towards that low that we saw on Thursday last week when we saw that momentum turning. And it seems to me that every time we see a steady increase there, we see those daily gains building to the upside, we then see a day of big reversal, those sellers piling into the market as soon as we see some negative sentiment.

It looks like those sellers are really watching out for any attempt to jump into the market, looking to sell the top, and that seems to be what happened in yesterday's session once again.

So it does seem that we are stuck in this sellers market, this bear market, where any attempted recovery is met with some fierce resistance from sellers. And it only takes one day of heavy selling to undo those steady gains that we've seen throughout the week. So more negative sentiment likely to come here.

Nasdaq 100

Let's quickly look at the Nasdaq to see how that is performing.

Similar scenario here, those daily gains were mounting there, not quite managing to see those higher highs on the upside. So it was showing a little bit of reluctance from those sellers to give in some further space.

Once again, we saw that intense selling, pretty much undoing the gains for the week, heading around the low of Thursday last week.

 

 

ig group.PNG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Commodity Markets Technical Analysis Elliott Wave Strategies for Bitcoin, Ether, Solana, TLT Bonds, US 10 Yr. Yields, USD/ DXY, UUP. Gold, GDX ETF, Silver, Copper, Nickel, Uranium, iron Ore, Crude Oil, Natural Gas  Commodity Market Elliott Wave Update:  Bitcoin & Ether, Wave iv) of 1 Dollar: DXY Wave b of (ii) rally. Bonds - higher. 10 Yr. Yields - lower Gold, GDX Wave (b) of  ii) Base Metals, Copper, Nickel, Uranium, iron Ore. Trend lower Natural Gas: Wave iv) corrective rally Crude Oil: Continue trending lower. Natural Gas Wave (iv) Trend lower Video Chapters 00:00 Bitcoin (BTC), Ether ETH/USD, SOLUSD 05:50 US Dollar Index, DXY / TLT Bonds. US Gov Bonds 10 Yr Yields 11:40 Precious Metals: Spot Gold XAU /GDX ETF / US Spot Silver XAG  14:25 Base Metals: Copper, Nickel, Uranium, iron Ore 18:30 Energy: Crude Oil WTI OIL / Natural Gas NG  26:24 End Analyst Peter Mathers TradingLounge™ Source: tradinglounge com   
    • While Layer 2 scaling solutions have helped alleviate congestion on blockchains like Ethereum, Layer 3 rollups are emerging as the next frontier for achieving ultimate scalability and cost-effectiveness. Three prominent layer 3 rollup stand out; ZKlink, Immutable X, and dYdX, each having its distinct strengths. .ZKlink stands out as a prominent player in this space, offering unique advantages compared to other Layer 3 protocols. While Immutable X Built on StarkNet focuses primarily on NFT marketplaces and gaming applications. dYdX utilizes StarkNet for rollups, achieving high throughput for trading activities. With each of the above focusing on a particular user in crypto space, ZKlink take it a bit far by prioritizing interoperability, liquidity solutions, and developer customization. ZKlink also the ability to bridge the gap between different blockchain layers and optimize scalability which makes it a significant force in shaping the future of decentralized applications.   The recent Bitget  listing of ZKLink native token further created buzz around the project due to the anticipation of the round one airdrop. Considering the fact that only ZK link utilizes fast financial transactions throughput using the innovative Ts-Evm makes it more unique and position it as the frontrunner in layer 3 rollup race.
    • I've been exploring numerous methods of passive earning over the years aside from spot trading. These methods include staking, futures trading, OTC trading, bot trading, copy trading, and launchpool. I've achieved some successes along the way, and now I'm trying to streamline and focus on just a few passive income opportunities. Actually looked into a project I encountered on X while browsing for opportunities. Branded as UPLAND, I was kinda drawn due to its Gamefi (NFT, metaverse) affiliation on Bitget's launchpool. Let's see what exploring this token fetches me this time 😁🤞🏻 Would love your shared experience(s) using this feature if any and what it's really like?
×
×
  • Create New...
us