A quick look at the business headlines reveals that the recent Bearish sentiment continues.
Bloomberg Headlines like "Cisco (CSCO) Stock Plunges After China Lockdowns, Ukraine War Wreck Forecast"
Pulling out of Russia and Belarus takes toll on sales
Revenue may decline by as much as 5.5% in current quarter
or another front page story
Stocks Suffer Steepest Rout in Almost Two Years: Markets Wrap
Target tumbles after trimming its profit forecast on costs
Major benchmarks drop more down 3%; Nasdaq 100 sinks 5.1%
US stocks posted the biggest daily drop in almost two years as investors assess the impact of higher prices on earnings and prospects for monetary policy tightening on economic growth. The dollar and Treasuries gained amid a pickup in haven bids.
The selloff sent the S&P 500 down 4%, the most since June 2020, with the plunge in consumer shares surpassing 6%. Target Corp. tumbled more than 20% in its worst rout since 1987, after trimming its profit forecast due to a surge in costs.
Shares of retailers from Walmart Inc. to Macy’s Inc. were caught in the downdraft. The Nasdaq 100 fell the most among major benchmarks, dropping more than 5% as growth-related tech stocks sank. Megacaps Apple Inc. and Amazon.com Inc. also slid over 5%.
Every now and then I have to dust off the
old October 1987 issues of the market news just to help keep things in perspective. I was a young broker with Paine Webber in California at the time talking with Art Cashin on the squawk box!
Those of you who follow my research and analysis know that over the years I've written extensively for some major publications on the subject.
Before I close this post I have to call your attention to the excellent work that's being done by Tom McClellan of McClellan Financial.
Both the McClellan Oscillator and the Summation Index have gone negative
McC OSC-29. 055-60261PRIOR McC OSC79. 440172132SUMM Index-1843. 740-2595178PRIOR SUMM Index-1814. 685-2534917
On his website you'll also find a great article he wrote regarding the "Bearish Extreme" of "Investors Intelligence"
As I mentioned earlier as a young broker with Paine Webber in California I recall following on KWHY Financial TV Tom's Father Sherman McClellan who has
a lifelong legacy of the very finest in technical research.
Check it out!