Bull market for US stocks on the brink of expiring

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New York, May 13 | The latest bull market for US stocks remains on the brink of expiring, with the benchmark S&P 500 just shy of the threshold that marks bear territory, MarketWatch reported.

The S&P 500 finished 0.1 per cent lower at 3,930.08 on Wednesday, after falling as far as 3,858.87 at its session low.

That was the index’s lowest close since March 25, 2021, and left it 18.1 per cent below its record finish from early January. A close below 3,837.25 would mark a 20 per cent fall, according to Dow Jones Market Data, meeting the widely-used technical definition of a bear market, the report said.

The S&P 500 entered the correction territory — a fall of 10 per cent from a recent peak — last month, its second such foray this year.

A tough April for stocks has been followed by an ugly May, with equities suffering as investors continue to dump megacap tech stocks and other highflying pandemic darlings amid investor jitters over inflation that continues to run historically hot and a Federal Reserve that is moving to quickly raise interest rates and otherwise tighten monetary policy in an effort to get those price pressures under control.

Hopes that an eagerly-awaited reading on April consumer price inflation on Wednesday would show inflation had peaked and help steady the ship offered little solace to the jittery investors.

The S&P 500 ended its last bull market on March 12, 2020, as the outbreak of the Covid-19 pandemic sent the stocks tumbling. The bottom of the pandemic-inspired bear market came on March 23, 2020, with the S&P 500 marking a 33.9 per cent fall from its bull market peak on February 19, 2020, MarketWatch reported.

Based on figures going back to 1929, the average bear market sees a peak to bear-market low decline of 33.5 per cent, and a median fall of 33.2 per cent, according to Dow Jones market data.

On an average, it has taken 80 trading days for the S&P 500 to hit its low after entering a bear market — and a median 52 trading days, the data showed, the report added.

Source: IANS

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Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

The NIFTY 50 recouped the previous day’s losses and ended at 2.89 percent higher on strong global cues after China cut key lending rates. Nifty continued its upside rally throughout the day as it ended at 16266.15 levels. Bank nifty closed the session at 34276.40 level with a gain of 960 points. VIX closed at 23.10 down by 5.94%.

48 stocks out of NIFTY 50 closed in green which suggest broad based buying. All the sectoral indices are trading higher with metal, pharma, PSU bank and realty indices up 2-3 percent each. Stocks like DRREDDY, JSWSTEEL, NESTLEIND, TATAMOTORS & TATASTEEL were the top gainers, While SHREECEM & UPL were only two losers. The Nifty has formed Open Bullish Marabozu on a daily time frame which indicates upside momentum for an upcoming session.

Moreover, Nifty has been trading in a range of 15750-16410 levels throughout the week, crossing either side can direct further direction. In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounceback from lower levels can be seen.

However, the momentum indicators MACD & Stochastic were trading witha positive crossover & reversed from oversold zone on an hourly chart which suggest a northward journey in Nifty. The Nifty may find Strong support around16000 levels, while on the upside 16410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33200 levels while resistance at 34800levels.

Palak Kothari
Research Associate
Choice Broking

Source: Choice India

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