Selling Pressure Hits Nasdaq and S&P 500 but Semiconductors Could Shine

au.investing.com/analysis/selling-pressure-hits-nasdaq-and-sp-500-but-semiconductors-could-shine-200555664

By Declan Fallon | Mar 23, 2023 18:27

Saved. See Saved Items.

This article has already been saved in your Saved Items

US500

+1.58%

Add to/Remove from a Portfolio

US2000

+3.15%

Add to/Remove from a Portfolio

IXIC

+1.09%

Add to/Remove from a Portfolio

SOX

-0.24%

Add to/Remove from a Portfolio

Monday's action had looked to provide some security for bulls, but then bears came in with gusto and closed the day with bearish engulfing patterns for the Nasdaq and S&P 500 and a big red candlestick for the Russell 2000.

The Russell 2000 experienced the biggest sell-off of lead indices. The substantial red candlestick came with higher volume distribution at a time when it looked like the selling was done. The index continued with its underperformance to the Nasdaq and S&P 500, so it looks like the crash watch is back on.

Russell 2000 (IWM) Daily Chart

The Nasdaq experienced a classic bearish engulfing pattern but managed enough to keep technicals net bullish while volume rose to register as distribution (just...). The prior breakout is still valid and will likely remain so for a few days longer, even if the selling was to continue, but today's selling is not one to inspire confidence.

Nasdaq Daily Chart

The S&P 500 experienced a sell-off similar to the Nasdaq, closing at breakout support (which is also its 200-day MA). The type of candlestick posted today is not typical of an immediate bullish reversal. We may see a small bullish candlestick, but I would be looking for some spike low or a move sub 3,900. The only good news was that volume didn't rank as distribution.

S&P 500 Daily Chart

One thing I haven't mentioned in a long time is breadth metrics. The Percentage of Nasdaq Stocks trading above their 50-day MA is below 20%, a typical zone where bottoms appear. Technicals are oversold, although the CCI has crept above the 20 line. We should be seeing a bottom soon.

Nasdaq Daily Chart: Percentage of Stocks Trading Above 50-Day MA

I'm watching the Semiconductor Index. It's most likely to clear resistance and deliver some optimism for markets.

Philadelphia Semiconductor Index Daily Chart

Tomorrow, the two indices to watch are the Russell 2000 for a breakdown and the Semiconductor Index for a breakout.

Is Tesla Stock Still a Buy After Multiple Analyst Downgrades? By Günay Caymaz/Investing.com - Jun 03, 2023

Tesla received downgrades from analysts post its recent earnings. In this piece, we will use InvestingPro to see if the company is a buy at current levels. You can do the same for...

2 Top Stocks to Buy and Hold for the Rest of the Year By Jesse Cohen/Investing.com - Jun 02, 2023

Fed policy uncertainty, worries over a looming recession, and stubborn inflation will continue to dictate investor sentiment in 2023. I used InvestingPro's stock screener to find...

Pro Research of the Week: Diversify Into Bitcoin With This Crypto... By David Wagner/Investing.com - Jun 02, 2023

Crypto stocks offer exposure to cryptocurrencies. Our InvestingPro advanced watchlist includes the best stocks in this category. Out of them, CleanSpark is a top pick with good...

Add a Comment

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically.
Use standard writing style. Include punctuation and upper and lower cases.
NOTE: Spam and/or promotional messages and links within a comment will be removed
Avoid profanity, slander or personal attacks directed at an author or another user.
Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read and understood Investing.com Australia's comment guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d70-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d70-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d70-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

RBA

3.85%

Jun 06, 2023

BOE

4.50%

Jun 22, 2023

ECB

3.75%

Jun 15, 2023

FED

5.25%

Jun 14, 2023

SNB

1.50%

Jun 22, 2023

BOC

4.50%

Jun 07, 2023

RBNZ

5.50%

Jul 12, 2023

BOJ

-0.10%

Jun 16, 2023

CBR

7.50%

Jun 09, 2023

RBI

6.50%

Jun 08, 2023

PBOC

3.65%

BCB

13.75%

Jun 21, 2023

S&P/ASX 200	7,145.10	+34.30	+0.48%
ASX 200 Futures	7,238.5	+113.5	+1.59%
ASX All Ordinaries	7,331.20	+40.50	+0.56%
US 500	4,287.3	+66.3	+1.57%
Dow Jones	33,782.88	+721.31	+2.18%
China A50 Futures	12,588.5	+207.5	+1.68%
Dollar Index	103.953	+0.451	+0.44%

Crude Oil WTI	72.00	+1.90	+2.71%
Natural Gas	2.189	+0.031	+1.44%
Gold	1,966.85	-28.65	-1.44%
Silver	23.718	-0.269	-1.12%
Copper	3.7302	+0.0192	+0.52%
US Sugar #11	24.74	-0.14	-0.56%
US Coffee C	180.60	-2.45	-1.34%

Australia 10Y	3.729	+0.079	+2.16%
Australia 5Y	3.535	+0.087	+2.52%
New Zealand 10Y	4.376	+0.021	+0.49%
U.S. 10Y	3.694	+0.100	+2.81%
Japan 10Y	0.410	-0.006	-1.56%
China 10Y	2.734	+0.011	+0.42%
Singapore 10Y	2.895	+0.011	+0.40%

CSL	308.00	-2.29	-0.74%
Woolworths	37.550	-0.540	-1.42%
ANZ Holdings	22.770	+0.040	+0.18%
Commonwealth Bank Australia	96.910	+0.110	+0.11%
Telstra Group	4.340	-0.050	-1.14%
National Australia Bank	25.790	-0.250	-0.96%
BHP Group Ltd	43.250	+1.180	+2.80%

Selling Pressure Hits Nasdaq and S&P 500 but Semiconductors Could Shine

Related Articles