Weekly S&P500 ChartStorm - 24 April 2022
The Weekly S&P500 ChartStorm is a selection of 10 charts which I hand pick from around the web and post on Twitter. The purpose of this post is to add extra color and commentary around the charts.
The charts focus on the S&P500 (US equities); and the various forces and factors that influence the outlook - with the aim of bringing insight and perspective...
1. Selling Starts Again: Looks like another wave of selling is underway. First glance at this chart I would say look for 50dma breadth to fall <30% before showing up as oversold, and price probably retests the March lows...
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBOWFZQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--d02378280dd409fc16cd5f32acd0c9a3c83875dc/1.jpg)
2. Mid-Term Election Year Seasonality Update: Season's Greetings…
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBK0NZQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--b1adb17765d302632de8766bc229dc40579130ab/2.jpg)
3. Insider Buying Fund: The social/saas/tech-heavy insider buying fund, INSAX, is continuing its plunge (crash?). Doesn’t look like a good omen for the rest of the market...
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBK1dZQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--f646929a352f36aafddf24f9c4a51412764f3ebe/3.png)
4. FAANG: FAANG going ex-growth? I guess it’s a good reminder that a bunch of techy growth stocks basically got a one-off boost to growth from the pandemic and valuations rose to levels consistent with/requiring ongoing strong growth. Priced for perfection means anything less than perfection will mean imperfect price action.
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBd0NaQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--f970ace3915ad788de848fe0c950beca15e856e0/4.png)
5. The Most Expensive Stocks: "Valuations Don't Matter" they told us…
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBd21aQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--897ff89778a528f64e10ab7f2d14c70f1df8362d/5.jpg)
6. Diworsification: Seems like the old hot areas of the market "Search for Yield" and "Growth at Any Price" are both getting butchered at the same time...
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBeHlaQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--7292de18b5ed8f56a64e1c7c7ec0dab5f9f2d604/6.png)
7. Price vs Fair Value: The Morningstar median price vs fair value estimate for all the stocks they have ratings on is starting to look cheap (…but perhaps not cheap enough yet?)
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBeVdaQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--90e6272acfd639bf29dfe3739865b2825bde0293/7.jpg)
Source: Morningstar Market Fair Value
8. Put/Call Ratio: Putty-call starting to show some signs of panic (…or perhaps greater greed on bearish option bets?).
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBeXVaQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--316e08d5060fb1efdd799847565a1e85cc51b4be/8.jpg)
9. Buybacks Bidding Bigger: JPM expecting $1T buybacks this year. Could be a source of buying demand against the bearish backdrop. Albeit, one element: the cost of corporate debt is going up, so there may be less raising of debt to fund buybacks.
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBeldaQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--9f8e7a2d2e97d51285195f1b392c71703c68b8bc/9.jpg)
10. Stocks vs Commodities: They say “the trend is your friend“. Maybe we should listen to what our friend is trying to tell us in this chart!
![](https://assets.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBenVaQVE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--86a9eaab6dadd9c9b8155003add070068c618044/10.jpg)
Thanks for reading!
Callum Thomas
Founder and Head of Research at Topdown Charts
Any feedback, questions and views are welcome in the comment section below.
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