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Join Larry McMillan as he discusses the current state of the stock market on May 16, 2022.
...I was saddened to hear that James Dines has died. I first heard of him in 1972, as I was beginning to trade in my...
Stocks continued to fall this week, after the last failed "one-day wonder" rally on May 4th. Support was broken at...
By Lawrence G. McMillan
Stocks continued to fall this week, after the last failed "one-day wonder" rally on May 4th. Support was broken at 4100, which quickly saw $SPX trade down below 3900. There is some support at that level, but there is a more well-defined support level at 3700 (the lows of February and March, 2021). Needless to say, the chart of $SPX remains in a downtrend (blue lines in Figure 1).
There are massive oversold conditions in put-call ratios, breadth, and New Highs vs. New Lows, but an oversold market is always dangerous. It can continue to decline sharply even while oversold. Any pversp;d rally is likely to fail in the 4200-4300 area.
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