Market breadth divergence: Bullish or bearish? [Video]

Ming Jong Tey Independent Analyst

Watch the free-preview video above extracted from the WLGC session before the market opens on 18 Jun 2024 to find out the following:

What does the divergence between the S&P 500's and market breadth's indicate for traders?
How significant is the oversold level in predicting a market rebound, and what thresholds should investors watch for?
The 2 scenarios you need to prepare for and my current bias based on 2 reasons.
And a lot more...

Market environment

The bullish vs. bearish setup is 226 to 278 from the screenshot of my stock screener below.

Although the market breadth has been decreasing, the number of bullish setups is still above 200. There is no shortage of the long setups.

However, the main focus should be on the technology stocks as this is the only sector RSPT beating the S&P 500.

Three stocks ready to soar

10 “low-hanging fruits” APH, CAVA, QCOM trade entries setups + 17 actionable setups were discussed during the live session before the market open (BMO).

The trade setup in DELL and MU discussed in the past session has been working well, which further confirms the outperformance in the technology sector (apart from NVDA alone).

APH

CAVA

QCOM

Author

Ming Jong Tey

Independent Analyst

Ming Jong Tey has been trading since 2008. He started his learning journey from technical analysis (indicators, Fibonacci, etc...) to value investing. Throughout his journey, he develops an interest in price action with chart pattern trading.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold buyers hesitate amid holiday-thinned trading

Gold trades volatile, but within range, as US, China holidays-led thin trading exaggerates moves. The US Dollar extends range play into the US GDP week, with markets pricing at least two Fed rate cuts this year. Technically, Gold tests key support at $5,000; daily RSI still remains bullish.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.