S&P 500 Market Breadth Data Suggests Broader Sell-Off Remains in the Offing

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Stocks Analysis by Anna Coulling covering: S&P 500, Citigroup Inc, Microsoft Corporation, Alphabet Inc Class A. Read Anna Coulling's latest article on Investing.com

on my X-feed, and yesterday’s highlighted how we should be watching the volume on the daily chart, given how volume has been falling as prices moved higher while trying to break through a strong resistance line .bond auction where lackluster demand forced yields much higher than anticipated. As someone commented on X, it’s not so much the economy but the deficit, particularly as the markets appeared to shrug off a higher-than-expected CPI print earlier in the session.

Whether yesterday afternoon’s jolt in market sentiment is the first significant stage in a broader market sell-off remains to be seen and will be signaled in the slower time frames. However, other factors to consider include the shocking market breadth data, which I have also highlighted on my X-feed.

For the S&P 500, this breaks down to what the media has dubbed the ‘Magnificant 7’, namely Apple , which together make up almost 30% of the index. If they do well, so does the index, but if they falter, the entire index & market will falter.Moving to yesterday’s 5-minute chart, we can see the waterfall.

 

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