Fear is growing by the day in the stock market in the United States. Buyers are being overwhelmed by sellers in 2022 with countless former high flying technology stocks now decimated, with the risk of a further much deeper decline growing by the day. Brokers are receiving countless calls from their clients who are panicked, and want out of the market,some at any cost
Retirees whose life savings are at risk in the US stock market are frightened and scared. And each day that, the market falls yet again, those fears are manifesting themselves and growing
The S+P 500, and the Dow Jones Industrials have fallen for 6 and 7 weeks in a row, respectively. Certainly a bounce back up the chart is called for right now the market being as oversold in some indicators as they've been since 2008
Its important to note here that technically the S+P 500 met major overhead Weekly Resistance yet again this past week at 4100, ..and failed yet again
The downside risk to the US stock market remains elevated and is growing by the day.
Technology stocks, bull market leaders as measured by the S+P Sector XLK 131.08 on Friday have a very bearish "rollover almost terminal technical pattern in place, with considerably more downside risk still left on the chart.
Its right there in front of you ! Read your charts. Longer Term Weekly/Monthly Charts take priority right now Memorial Day weekend in the US has traditionally been a "bullish" time for the US stock market.
But If the market continues to fall this week, the seasonal fireworks could be in the countless thousands of "margin calls" that will go out from brokers demanding more money from their panicked clients or they will sell their stock to get it.
That's coming next,. if the market continues to fall.
Beautiful decade we are living. May be we will be the first to experience the first bear market in all times. Nice. Obviously, with lot of respect and sadness for people that will suffer. I'm just talking about our experience as traders.
The_Unwind
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@leonardoauer, Market is volatile. Today's up was a bullish short term trading breakout. 4100 Resistance. Thanks for your input. Always appreciated.
CryptoBeebo
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This is one of the only accounts I follow. Very insightful and I love the splashes of color you give your story. I agree by the way.
Thank you once again! Could this be the week for capitulation and early fireworks! Also, what is your view on the next support zone for ULTA given the consumer slowdown?
The_Unwind
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@yo-bmanz, I don't follow ULTA. Thanks for writing me.
mjcpaull
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Think you're right. Much of the buying was leveraged ..... works well in a rising market but the multiples become devastating when underlying is falling ..... market could gap down / turning fear to panic and a resulting flash crash...... you well could be right. Good call on margins MP
The_Unwind
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@mjcpaull, Thanks. Market sentiment got very bearish. Today's rally hit the bears. Margin calls are outstanding, next time if 3800 is lost. Thanks for writing.
Obviously, with lot of respect and sadness for people that will suffer. I'm just talking about our experience as traders.