12/06/22T Uptrend – Nasdaq falls for 3rd day in arow to 11,000 support again
THE MARKET’s MESSAGE: Nasdaq and S&P500 indexes stay pinned between their50-day and 200-day lines for 4th lower high but are dropping overall.
The two major indexes, theNasdaq and S&P500, are retreating fromtheir 4 th lower highs (see the arrowsbelow) since the beginning of Downtrend, almost a year ago.
At the moment, I do not see a chart signal for the recent Uptrend to continue.
And remember: At some timethis long-term decline will reverse back up. I was slightly hopeful when the S&P500 again peaked above its 200-day line last week, but it again immediately retreated.
Yes, the DJIA has stayed above its 200-day for overa month. Bravo! But is has also fallen hard in the last 4 days just as the other two indexes have. And note the volume of this period in all the above indexes wasmostly below average around the Thanksgiving holiday.
The question on everyone’s lips is, “When will thisdowntrend end?” I don’t think we will find the answer in the DJIA. And without its recent leading rise, the other two indexes are not showing Uptrend strength.
The MARKET FACTORS, COUNTS& RATING table shows B ratings for all three indexes. That is encouraging for the current Uptrend to continue. Jump down to the next table – MARKET ACTION (Nasdaq) OVER THE LAST 20 DAYS
I was encouraged about the story told by the MARKET ACTION table recently – there was a lot of green. But isolate your vision onto the last 7 days: Note the change in personality on 11/28. The last 7 market days have shown:
· 3 dayswere distribution days ( 2 of those were big drops – Major Distributions)
· 3 dayshad lower volume indicating uncertainty,
· Only oneday was an accumulation day (11/30)showing serious market buying.
And note on that one accumulation day, the market hit a new high (in the last 20 days). And what happened over the next 4 days? A 4.0% drop! During this recent rise in the Nasdaq, the indexdid not even touch its 200-day line.
>>>> I am sorry to say I do not see much strength in the market right now. But I am hopeful!
My analysis of the Accumulation/Distribution data – It is still EXTRAORDINARY!!!!
But there is a delay togetting enough history on the rising stocks to raise or drop their Accumulation/Distribution ratings.
· The recent chart action of the Nasdaq and S&P500 is weak as they continue to cower back below their 200-day lines.
· But I am hopeful for a continued Uptrend that will break through the 200-day lines powerfully.
STOCK WATCHING: Catalyst Pharma CPRX
CPRX continues to dance around its breakout price. If it doesn’t take off by Friday, I will seriously consider selling it. It’s next earnings announcement will be around March 15, 2022. I'm not willing to wait for that long. BUt I will keep CPRX on my watch list
>>>> Have you found additional data or news about Catalyst Pharma I have missed?
Or a GREAT STOCK you would like to suggest?
Wishing you and yours a happy and safe holiday season.
Charlotte Hudgin, The ArmchairInvestor, (214)995-6702