Payne's Perspective: May 23, 2022: Darkest Before Dawn
It was a rough week!
How rough was it?
The S&P 500 and NASDAQ Composite finished down for the seventh consecutive week.
Wow, what about the Dow Jones Industrials?
Down for the eighth consecutive week -the toughest streak of weekly losses since 1932.
First, let me say the market is extremely oversold.
Second, that doesn’t mean it snaps back right away.
But there will be stages of recovery that will include a monster snapback, which will prove to be more than a bear market bounce, followed by the process of building a new supportfoundation that will probably be above a former support/resistance point.
And after that, the market moves higher.
I get this sounds pretty simple. In hindsight, it will even look obvious. But in real-time, with so many negative voices screaming, and the market going lower as major indices lurch into their daily freefalls, it is anything but easy or obvious.
I think the last half hour of trading was a clear signal that selling is generally overdone. In fact, there were a few signs last week that suggest a near-term bottom.
How to navigate bounces is the main topic of the moment.
To read the full report contact your account executive or email Research@wstreet.com.
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