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All Signs Point to a Shakeout Before the Market Heads Higher

by | May 6, 2022

U.S. stock futures are down again following Thursday’s massive sell-off — and more in Friday’s stock market recap.

The S&P 500 fell more than 3% Thursday in its second-worst trading session this year, while the Dow lost more than 1,000 points, or about 3%.

The Nasdaq dropped almost 5% to its lowest closing level since November 2020. But we’re seeing a divergence between the index and its Relative Strength Index, which indicates it’s oversold and needs to move higher.

In regard to why we’ve had such a big sell-off, there’s not much if any supporting data other than people are fearful.

Investors could be concerned the Federal Reserve won’t be able to get inflation under control while earnings have disappointed for some companies…

But all signs point to a shakeout, which we usually see at these levels before the market heads higher.

Meanwhile, nonfarm payrolls came in at 428,000 versus a consensus of 400,000 new jobs added. The unemployment rate is 3.6% versus 3.5% expected.

In this morning’s stock market recap video, you’ll discover the most beaten-down sector coming back to life… what the current divergence in bonds and stocks is pointing to… a deep dive into market internals for bearish or bullish confirmation… sector rotation analysis to help you gauge strength… a look at the jobs data coming out Friday… plus the major levels in key indices right now.

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to!

P.S. Don’t Try to Be a Hero

In these markets, don’t try to time the bottoms…

Because there’s going to be some fallout.

In fact, according to former $700 million hedge fund manager Jeff Zananiri, there are multiple crashes coming.

He’s been trying to warn traders for weeks now…

And he just went live to reveal a unique opportunity to play both sides!

Because if traders aren’t primed to take advantage of market crashes, they could be left on the sidelines watching the grand slam opportunity of the decade pass by.

Watch the Presentation Here!

P.P.S. When it comes to trading, every second counts. And in choppy markets like these, often driven by headlines, stocks can make big moves in a flash.

That’s why I want you to get my latest trading ideas and market updates as fast as possible. So I’m rolling out an all-new option for my students to receive trade alerts with Telegram!

Telegram allows me to get trade ideas, videos and watchlists to you in a matter of seconds.

Check out this short article we put together with instructions on how to download telegram and access my private channel. Go here to get the details. 

Stock Market Recap: By the Numbers

This morning’s stock market futures recap:

DOW (mini)

  • Close: 32,997.97.
  • Futures: 32,737.
  • Change: -173.

S&P 500 (mini)

  • Close: 4,146.87.
  • Futures: 4,117.25.
  • Change: -26.

NASDAQ (mini)

  • Close: 12,850.55.
  • Futures: 12,746.75.
  • Change: -111.25.

RUSSELL (mini)

  • Close: 1,871.15.
  • Futures: 1,860.1.
  • Change: -8.

Note: Updated as of 9:27 a.m. EDT

On Fridays, we’ll review the week that was… We’ll discuss how our trades did, what we learned and how to apply it to next week’s trading plan, and any developing trade setups. This video will put a bow on the week. We’ll also go over winners from my different member strategies.

Need help understanding some basics that we discuss frequently? Check out some of our educational pieces to help get yourself up to speed! Have a question or a topic you’d like us to explain in a future article? Send your thoughts to support@marketgeeks.com!

Check back each morning for the Roger Scott newsletter and the most important news and numbers in the WealthPress stock market recap.

WRITTEN BY<br>Roger Scott

Roger Scott

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