Stocks were once again slammed lower, today April 26, 2022. The S&P 500 declined 2.8% today as the NASDAQ fell 4.0%. 89% of stock in the New York Stock Exchange were lower on the day, which once again missed the 90% downside day that’s pretty much required to start the bottoming process.
The lack of a 90% downside day likely means lower lows ahead. The S&P 500 closed the day at 4175.
How much lower could the market go:
- The S&P 500 closed at 4175 today.
- My Fair Value for the S&P is 3955: -5%.
- The 40-month exponential moving average for the S&P 500 is 3717: -11%.
*The 40-month EMA often marks the bottom as institutions buy in at that level.
Winners on the Day
Winners on the day included Blue Chip stocks Sherwin Williams (SHW), which was up 9% and Waste Management (WM), which rose 5%. Both reported earnings today:
Waste Management (WM) reports qtrly profits (EPS):
- Reported: $1.26 vs. $1.06 = +19%
- Estimates: $1.13 vs. $1.06 = +7%
- Beat the street by $0.13
- Revenue: +13%
Sherwin Williams (SHW) reports qtrly profits (EPS):
- Reported: $1.61 vs. $2.06 = -22%
- Estimates: $1.55 vs. $2.06 = -25%
- Beat the street by $0.06
- Revenue: +7%
Chart of the Day
Here’s what Tesla (TSLA) looks like in a one-year view. Notice profit growth has been above 200% recently.
TSLA stock was down 12% on the day, with a possible cause being Elon Musk perhaps shifting his attention (and time) to Twitter.
This chart was done before the market opened today, with TSLA shares ar $998. The stock closed at $876. We were big buyers of the stock during the trading session.
