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Stocks Plunge To A New Closing Low

By Michael KramerStock MarketsSep 27, 2022 09:29
ng.investing.com/analysis/stocks-plunge-to-a-new-closing-low-131372
Stocks Plunge To A New Closing Low
By Michael Kramer   |  Sep 27, 2022 09:29
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US500
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Stocks finished yesterday lower, with the S&P 500 dropping around 1% to a new cycle low, closing at 3,655, which was lower than the June low of 3,666. The move lower followed higher rates, a strong dollar, and wider spreads. It sent implied volatility levels higher, dragging the S&P 500.

The index tried to rally but failed early on and is now entering oversold conditions with both an RSI below 30 and an index trading below the lower Bollinger band. But just because a market is oversold, it does not mean it can’t become more oversold.

The S&P 500 was more oversold in January than it is now. I would like to see the RSI make a new low, implying the S&P 500 would need to fall further.

S&P 500 Daily Chart
S&P 500 Daily Chart

TIP Vs. Nasdaq

Meanwhile, the 10-year TIP rose yesterday by almost 31 bps to close at 1.62%, its highest level since the spring of 2010. But what is crazy is that despite the Nasdaq being down almost 33% from its peak, the index is more overvalued yesterday than at any point since 2009. Stocks just aren’t falling fast enough to keep pace.

NDXEY2 Chart
NDXEY2 Chart

AMD

Advanced Micro Devices (NASDAQ:AMD) is getting closer to filling that gap at $62.60.

AMD Daily Chart
AMD Daily Chart

Adobe

Adobe Systems (NASDAQ:ADBE) is now below its pandemic lows and could be on its way to $261.

Adobe Inc, Daily Chart
Adobe Inc, Daily Chart

Block

Block (NYSE:SQ) fell through the ascending broadening wedge and is probably heading to its pandemic lows.

Square Inc Daily Chart
Square Inc Daily Chart

Original Post

Stocks Plunge To A New Closing Low
 

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Stocks Plunge To A New Closing Low

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