Marginal Changes in Most Important Indexes

The Fed actions trying to control the inflation have been sinking the Market for a while now. Today the San Francisco Fed President made some positive comments about the strength of the USA economy, which caused the indexes to recover most of the losses that they had during the day. Below is the updated table of the amount of losses since the Correction started.

The New Highs and New Lows numbers (NH-NL) are still deteriorating, which is concerning given that at least a small reaction rally would be expected at oversold levels like the ones we are currently facing.

Currently the daily chart of the S&P 500 continues at oversold levels. The selling pressure is so high that since April/22 the index continues the decline at oversold levels without even getting close to the 30-day EMA line (blue line). If the 3,900 support, which is currently being tested, doesn't hold the price decline the index could go down as low as 3,500.

Despite the situation, some indexes ended recovering most of the losses of the day, some even closed in positive territory, I still doubt the quality of the movement. It will be quite interesting to see how the trading week ends. It's pretty unlikely to see now a V-shaped recovery and we are still not seeing the Market tracing a bottom, so let's get ready for more volatility at least for the next few days.