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The stock market may be looking to test the bottom soon - March 4, 2022

March 07, 2022
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market update

What happen to the market this week?

The stock market may be looking to test the bottom soon once again as Ukraine/Russian conflict continue to escalate. The Russians shell Ukranian nuclear plant and sparks fear on Friday. Late Sunday, US is considering an oil embargo on Russia. This in turn spark a rise in price of oil.

Overall this week, the major stock market indices suffer losses.

Index	Feb. 28 - Mar. 4
Nasdaq	-2.78%
S&P 500	-1.27%
Dow Jones	-1.30%
Russell 2000	-1.96%

What is the current support level?

Most of the major market indices found resistance once again at its 21 days moving average. This is not good news as the index may be heading lower to test its previous bottom on Feb. 24.

NASDAQ - below its 50 days moving average line near 14700; current at 13313
S&P 500 - below its 50 days moving average line near 4590; current at 4328
DJIA - below its 50 days moving average line near 35300; current at 33614
RUSSELL 2000 - below its 50 days moving average line near 2100; current at 2000

Psychological levels

Nasdaq is below 14000.
S&P 500 is below 4400.
Dow Jones Industrial Average is below 34000.
Small cap Russell 2000 is above 2000.

Stock market breadth - Accumulation vs Distribution for this week:

#industry groups 122 vs 149

#stocks 397 vs 628

The stock market had more distribution than accumulation. Although this was a bad week, there was still accumulation in some stocks. It is important that the general market can bounce back soon otherwise it might be heading for another leg down.

Check out our course How to measure or calculate stock market breadth.

Which industry groups show strength?

There are many industry groups in the commodities/energy sector showing accumulation.

Sector	Industry	Sub-group	#	Stocks
Technology	Public Utilities	Telecommunications Equipment (Foreign)	1	RCI

Retail	Consumer Non-Durables	Specialty Foods	2	HSY, TR
Retail	Consumer Non-Durables	Packaged Foods	2	ADM, ANDE
Retail	Consumer Services	Automotive Aftermarket (Parts)	1	ORLY
Retail	Consumer Services	RETAIL: Building Materials	4	FAST, GWW, MSM, TSCO
Retail	Consumer Services	Other Specialty Stores (Leisure)	1	HIBB
Retail	Consumer Services	Department/Specialty Retail Stores	4	COST, PSMT, TGT, WMT
Retail	Consumer Services	Restaurants	2	BH, SG
Retail	Consumer Services	Food Chains	6	ACI, CASY, IMKTA, KR, NGVC, SFM
Retail	Consumer Non-Durables	Food Distributors	1	UNFI

Industrial	Capital Goods	Military/Government/Technical	11	AJRD, CW, GD, HEI, HII, KTOS, LHX, LMT, MRCY, NOC, TDY
Industrial	Consumer Durables	Consumer Electronics/Appliances	2	LII, WSO
Industrial	Capital Goods	Engineering & Construction	1	FLR
Industrial	Miscellaneous	Business Services	3	BAH, ICFI, SAIC
Industrial	Miscellaneous	Business Services (Outsourcing)	1	EXLS
Industrial	Basic Industries	Metal Fabrications	2	RYI, ZEUS
Industrial	Capital Goods	Wholesale Distributors	1	TRN
Industrial	Transportation	Railroads	5	CNI, CP, CSX, NSC, UNP
Industrial	Consumer Services	Marine Transportation	5	CMRE, DSX, GSL, KEX, ZIM
Industrial	Public Utilities	Power Generation	9	AVA, CMS, CPK, D, DTE, NWE, SJI, WEC, XEL
Industrial	Basic Industries	Electric Utilities: Central	8	AEP, AES, EIX, ETR, IDA, NEE, PNW, POR
Industrial	Public Utilities	Water Supply	1	AWK

Health	Health Care	Hospital/Nursing Management	3	HCA, THC, UHS
Health	Health Care	Medical Specialities	5	ANTM, CI, MOH, PGNY, UNH
Health	Health Care	Other Pharmaceuticals	2	MCK, PETQ

Commodities	Consumer Services	Farming/Seeds/Milling	3	APPH, BG, DAR
Commodities	Basic Industries	Agricultural Chemicals	6	CF, FMC, MOS, NTR, SQM, UAN
Commodities	Energy	Industrial Machinery/Components	9	ACA, AMRC, AQN, AY, BEP, CLNE, CWEN, EVA, REGI
Commodities	Energy	Coal Mining	6	AMR, ARCH, BTU, CNX, HCC, METC
Commodities	Technology	Semiconductors (Solar)	2	FSLR, JKS
Commodities	Capital Goods	Industrial Machinery/Components	3	AGCO, ALG, DE
Commodities	Basic Industries	Precious Metals	13	AEM, AGI, AU, BVN, FNV, GOLD, HL, NEM, PAAS, PVG, RGLD, SBSW, WPM
Commodities	Basic Industries	Precious Metals	7	AA, FCX, PLL, RIO, SCCO, TECK, VALE
Commodities	Energy	Oil & Gas Production (Canada)	2	CNQ, ERF
Commodities	Energy	Oil & Gas Production: Drilling	4	HP, PTEN, RIG, VAL
Commodities	Energy	Oilfield Services/Equipment	9	HAL, HLX, KLXE, NR, OII, OIS, PUMP, RES, TUSK
Commodities	Energy	Integrated oil Companies	10	AM, CVX, EC, EQNR, EQT, MRO, PBR, PTR, WMB, XOM
Commodities	Energy	Oil & Gas Production (International)	6	APA, COP, HES, MUR, OVV, OXY
Commodities	Energy	Metal Fabrications	6	DRQ, FTI, GTLS, MRC, NOV, WHD
Commodities	Energy	Integrated oil Companies	6	CEQP, GEL, MPC, NS, PBF, TRGP
Commodities	Energy	Oil & Gas Production (Royalty Trust)	3	SBR, SJT, TPL
Commodities	Energy	Natural Gas Distribution	12	DCP, ENB, EPD, GLNG, HESM, KMI, MPLX, OKE, PAA, PAGP, SHLX, STNG
Commodities	Energy	Oil & Gas Production (U.S.)	28	AR, CDEV, CHK, CIVI, CLR, CPE, CRC, CTRA, DEN, DVN, FANG, GPOR, LPI, MGY, MNRL, MTDR, NOG, OAS, PDCE, PHX, PXD, RRC, SBOW, SD, SWN, VNOM, WLL, WTI
Commodities	Basic Industries	Steel/Iron Ore	6	CLF, GGB, NUE, STLD, TS, TX

Financial	Consumer Services	Real Estate Investment Trusts	18	AMH, AMT, AVB, CCI, CRESY, CUBE, ELS, ESS, EXR, LSI, MAA, NSA, PLD, PSA, RYN, SRC, STAG, UDR

Which industry groups from recent strength show weakness this week?

Relative strength drops by 1%
Technology	Technology	Computer Software: Prepackaged Software (Design)	-2	ADSK, BSY

Relative strength drops by 10%
Technology	Consumer Durables	Telecommunications Equipment	-4	CIEN, INFN, LITE, VIAV

Relative strength drops by 10%
Retail	Consumer Services	Clothing/Shoe/Accessory Stores	-15	COLM, CPRI, FIGS, GIII, GIL, KTB, LEVI, PVH, RL, TPR, UA, UFI, VFC, VRA, VSCO

Relative strength drops by 10%
Retail	Capital Goods	Auto Parts:O.E.M. (Equipment)	-10	APTV, BWA, CPS, DAN, GNTX, LEA, MGA, MOD, THRM, VC

Relative strength drops by 1%
Retail	Consumer Durables	Specialty Chemicals	-2	ENR, GNLN

Relative strength drops by 2%
Retail	Consumer Services	Other Consumer Services	-2	EDU, RYB

Relative strength drops by 6%
Retail	Capital Goods	Industrial Machinery/Components	-3	EMKR, ST, TRMB

Relative strength drops by 3%
Retail	Consumer Services	Hotels/Resorts (Gaming)	-9	BYD, CZR, DKNG, EBET, IGT, LVS, MGM, SGMS, WYNN

Relative strength drops by 2%
Retail	Consumer Services	Consumer Electronics/Video Chains	-1	GAIA

Relative strength drops by 1%
Retail	Consumer Services	Marine Transportation	-12	CCL, CUK, LYV, MTN, NCLH, PLNT, RCL, SEAS, SIX, UBER, VAC, WMG

Relative strength drops by 1%
Retail	Consumer Services	Television Services	-2	LSXMA, TV

Relative strength drops by 1%
Retail	Consumer Non-Durables	Farming/Seeds/Milling	-2	BTI, PM

Relative strength drops by 8%
Industrial	Technology	Advertising	-5	CRTO, IPG, LAMR, OMC, PUBM

Relative strength drops by 1%
Industrial	Technology	Diversified Commercial Services	-2	AER, AL

Relative strength drops by 1%
Health	Health Care	Medical/Dental Instruments	-4	CDNA, ITGR, SMLR, SNN

Relative strength drops by 3%
Health	Health Care	Medical Specialities (Supplies)	1	PDCO

Relative strength drops by 1%
Health	Health Care	Biotechnology: Electromedical & Electrotherapeutic Apparatus	-4	BRKR, MASI, NVST, PLSE

Relative strength drops by 1%
Financial	Finance	Investment Bankers/Brokers/Service	-12	AMP, COWN, CS, EVR, LAZ, LPLA, MC, PIPR, RJF, SCHW, SF, XP

Disclaimer: MCBOSS CAPITAL provides financial education and information research. None of this information should be used for investment purpose. Please seek professional advice. Information provided may not always be accurate.

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