Stock Market Update Wednesday February 7, 2024 Negative Breadth Is Only A Condition Not A sell Signal. Market breadth indicators showed a rebound on Tuesday, albeit with lingering concerns among traders regarding large tech stocks in the aftermath of Meta’s earnings release. Today we had the exact opposite as they where buying big tech stocks and selling the small caps IWM ETF in the morning and then closed flat. February typically witnesses heightened volatility, aligning with the current market conditions. Market breadth metrics, which are heavily influenced by small-cap stocks due to their greater number compared to large-cap stocks, reflect this sentiment. The negative breadth observed on Monday stemmed from the underperformance of small caps, a trend that has persisted over recent months. Negative breadth is only a condition not a reason to sell stocks. The indices were higher through midday. However, while S&P500 fans have eagerly awaited the Futures to surpass the magical 5,000 mark, the SPX500 did not achieve this milestone.
Away From Stocks: A stronger-than-expected reception for the record $42 billion auction of 10-year notes headlined a day of modest losses in the Treasury complex (2- and 30-year yields each ticked higher by two basis points). WTI crude climbed above $74 a barrel, gold stayed at $2,034 per ounce and the VIX slumped below 13.
VIX at trendline support, let's see if it breaks or bounces off.
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