By: Jeff Cooper

Hit and Run Morning Stock Report: August 30th, 2022


Today’s report is brief. I was under the weather last night.

Friday produced extraordinary selling pressure defined by a breadth of -2324/-2993.

It subsided for a few hours on Monday as battered markets attempted to rebound.

That said, Monday continued the string of losses in weak market internals that has persisted since August 16th  as it dove on the runoff.

To recap the Trend and the current Intermediate and Short-Term direction as a downtrend:

The NYSE McLellan Oscillator is declining. The 13-day moving average is below the 34-day ma.

The NAZ McClellan Oscillator is declining also with the 13-day ma below the 34-day ma.

The NYSE Summation Index is falling

Be that as it may even within Short-Term downtrends, markets back and fill and that is what we got Monday.

The sentiment became so negative Friday that markets “got ahead of themselves” and “need” to consolidate/rebound.

This rebound is taking place off a logical level as to the SPX: 4020 which is 1080 degrees down from the ATH.

That said, the QQQ has not struck the idealized 302 square yet. Perhaps it will today/tomorrow on “the week of” the Time/Price square-out.

As well perhaps the SPX came close enough to its 50 day to perpetuate this rebound.

It seems inane and Algomatic that the downdraft into Monday’s bell is being met by this pop-up…but maybe “someone” put the hook in for a squeeze play.

The Trend is down. Sit Tight.

The top of the broken trend channel on the SPX is the 4080 region.

It may be backtested if the market maintains traction after the first hour.