by The Dow Jones changed a bit on Wednesday, as well as the S&P 500 and Nasdaq indexes. The expected Apple event might unveil a new iPhone according to speculations. The US Treasury yields rose again and led to the stock market losing more ground on the day.
Indexes Drop Further
Thus, the main indexes in the stock market dropped father beyond their 50-period simple moving averages. Nasdaq particularly prolonged its ongoing losses for the seventh day, and it undercut the intraday low in June.
It might not be the perfect time to increase investment exposure, but investors might want to watch out for shares that have some strength. Waste Management, Waste Connections, Cigna, Ulta Beauty, and Enphase Energy are all examples of shares with strong lines being high for 52 weeks.
How stock performance against the S&P 500 is tracked by the RS line while it is also a simple way to identify bulls and bears in the market. When the RS line gets to a new line at the same or before stocks break out, then it is considered bullish.
Ulta Beauty, Waste Connections, and ENPH shares are inviting although it is risky to buy shares now due to market conditions. WCN and Enphase shares are currently in IBD 50.
China Battles COVID
DOW Jones turned in the direction of a high against fair value. S&P 500 went flat while Nasdaq 100 took a dip. The ten-year Treasury bond yield dropped 1 bps to be at 3.33%. Crude oil prices were also flat on the day and natural gas lost 2%.
There are over 60 million Chinese residents under lockdown as there is a surge in COVID cases across the country. There is a total lockdown in Chengdu and there are indications that it might get extended. The Shenzhen tech center is equally under some restrictions.
The restrictions in China are causing some damage to the country’s economic life. Note that actions that happen overnight around Dow Jones and other places don’t necessarily mean there will be actual activities when the next session comes up.
The Nasdaq dropped for the seventh session in a row. S&P 500 and Dow Jones experienced just one uptrend in the same period. They are all losing their 50-period simple moving average. It might be time for the market to bounce, analysts, however, say it might not really have any meaning.
