- The S&P 500 (-3.25%) was pummeled yet again; only 3% of stocks closed in the green as the VIX rallied back to 33
- 43% of the components in the S&P 500 hit a 52-week low today and 40% of the components currently have an oversold weekly cluster
- The S&P 500 is down 12.2% over the last 10 trading days; the last 3 instances of that scenario (2009, 2011, 2020) resulted in a bottom for the market
- All four major U.S. equity indices hit 52-week lows today, which was psychologically damaging consider yesterday’s rally after the FOMC meeting
- All four major U.S. equity indices have strongly bearish intermediate postures and are trading below falling 30 day moving averages
- Because there was a relative lack of volatility in today’s one-sided market, the only index to have a wider range of trading than normal was the Russell 2000
- The NASDAQ Composite sold off 4.08%, the Dow Jones Industrial Average shaved off 2.42%, and the Russell 2000 was down 4.70%
- Dividend Yield continues to lead on the Factor Selector; of the 14 stocks in the S&P 500 that were higher today, 6 of them were Dividend Aristocrats
- The 10-Year Treasury Yield fell for the 2nd straight day to 3.30%, as market participants viewed Treasuries as a safe haven and were attractive to more robust yields
- Oil (+0.84%) and gold (+1.12%) both rallied after the U.S. Dollar (-0.97%) sold off for the second straight day
- While Long Term U.S. Treasury Bonds rallied 0.79% on this risk-off day, High Yield (aka Junk) bonds sold off another 1.59%
- Bitcoin continued its strong sell-off in the face of portfolio de-risking; it continues to have a strongly bearish posture and is now sitting around $20,000
- Foreign stocks sold off equally as hard as U.S. stocks today, as there were simply very few places to hide
- All eleven sectors now have a strongly bearish intermediate posture; they are also all trading below their falling 30 day moving averages
- Despite relatively strong oil prices, the Energy sector was today’s worst performer (-5.63%)
- The best performing sector was Consumer Staples (-0.76%), likely due to their defensive characteristics
- Our trade application example featured selling a put on the NASDAQ 100 ETF (QQQ) due to our previous similar trade likely rolling off our books tomorrow at max gain and due to the fact that the original trade signal (oversold weekly cluster) once again exists (for just its third time of the past decade)
Here's the intro of today's #MarketOutlook video from @MarketScholars
— 𝐁𝐫𝐚𝐧𝐝𝐨𝐧 𝐕𝐚𝐧 𝐙𝐞𝐞 (@BrandonVanZee) June 17, 2022
Watch the full video for free here:https://t.co/DkvuIWgENB
Mentioned: $SPY $SPX $QQQ $IWM $RUT $UUP $TLT $TNX $EEM $EFA $USO $VIX $BTC $PG $NVDA $QCOM $TSLA $WMT $CHD $HRL $JNJ $ABBV $COP $EOG $TWTR $QQQ pic.twitter.com/uEgLQYEc95
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