STOCKS REMAIN UNDER PRESSURE -- BREADTH FIGURES CONFIRM BEARISH OUTLOOK

S&P 500 REMAINS IN DOWNTREND...Stock prices continue to weaken with no sign of a bottom.   The daily bars in Chart 1 show the S&P 500 having fallen to the lowest level in more than a year and nearing a 20% loss which signals a bear market.  In addition, its moving average lines remain in bearish alignment.   The three moving average lines show the blue 50-day moving average having fallen well below its red 200-day line.   And its green 20-day average remaining below its blue 50-day line which also signals an ongoing downtrend.  Last week's message showed the SPX nearing a test of its 38% Fibonacci retracement line measured from its spring 2020 low which remains the market's first downside target.    The green horizontal line in Chart 1 shows the SPX nearing that line.   Breadth figures also remain weak.

BREADTH MEASURES REMAIN WEAK...An article in today's Wall Street Journal points out that eight large stocks in the technology sector account for nearly half of this year's S&P 500 losses.   Even so, measures of market breadth show that the current market downtrend is pretty broad based.   The blue line in Chart 2 shows the percent of S&P 500 stocks above their 50-day moving average falling below 15% which is the lowest level in two years.   In addition, the red line in Chart 3 shows the percent of S&P 500 stocks above their 200-day moving average falling below 30% for the first time in two years.   In other words, more than 70% of SPX stocks are in major downtrends.