Stock Market Negatives And Key Levels To Hold

The most important problem for the stock market is that all major averages have negative weekly charts. This put the market into “sell strength” mode.

The Dow Jones Industrial Average (DJI) set its 2022 low of 33,150 on January 24, below its quarterly and semiannual pivots at 33,711 and 33,989, respectively. If the average stays below its 200-day simple moving average, now at 34,972, a death cross is likely in February when the 50-day simple moving average falls below the 200-day SMA.

The S&P 500 Index (SPX) set its 2022 low of 4,222.62 on January 24, below its annual pivot at 4,383. It’s above its semiannual value level at 4,125. This is the downside risk if the index stays below its 200-day SMA at 4,433.80. The quarterly risky level remains at 4,527.

The Nasdaq Composite (IXIC) set its 2022 low of 13,094 on January 24 below its semiannual and annual pivots at 13,915 and 14,004. If the average stays below its 200-day simple moving average, now at 14,729, a death cross is likely in February when the 50-day simple moving average falls below the 200-day SMA.

The Dow Jones Transport Average (DJT) set its 2022 low of 14,750 on January 27, below its quarterly and annual pivots at 15,123 and 15,230, respectively. It’s above its semiannual value level at 13,229. If the average stays below its 200-day simple moving average, now at 15,332, a death cross is likely in February when the 50-day simple moving average falls below the 200-day SMA.

The Russell 2000 Index (RUT) set its 2022 low of 1,931.41 on January 27, below its quarterly and annual pivots at 2,176 and 2,106, respectively. It’s just below its semiannual pivot at 1,971. The index already confirmed a death cross on January 19 when the 50-day simple moving average fell below the 200-day SMA.