The selling on Tue Apr 5 2022 was caused primarily by three events. The first without doubt was comments from two Fed Presidents, Daly and Brainard which were more hawkish than investors expected. In particular comments on reducing the Fed’s balance sheet quickly, caught investors by surprise. This resulted in most of the selling. The second was the inability of the index to break through 4600 convincingly and move still higher. Overall the market needs more buyers and they are just not presently buying above 4600. Third was news of China’s covid-19 lockdowns.
The Market Breadth Indicator signals following Tuesday’s sell-off should be reviewed by members before markets resume trading on Wednesday.
The Market Breadth Indicator outlook is for both the S&P and the NASDAQ indexes.
The market breadth indicator analysis and outlook is for FullyInformed Members.
Market Breadth Indicator – Advance Decline Numbers Outlook For Wed Apr 6 2022
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