US indices again made fresh lows for the year overnight after failing to hold onto early gains in the session, China facing names fared the worst on heightening COVID and growth fears. Equities clearly don’t look good today as they post fresh 2022 lows but interestingly the market internals are improving e.g. we have a reduced number of stocks making new lows (improved market breadth) and a spike in the put/call ratio to multi-year highs both being encouraging leading indicators to support our view that a decent low is close at hand.
- We believe US stocks are very close to a swing low for 2022 as the market internals actually start to improve.
- We are bullish looking for a test of August highs into Christmas i.e. another 15-20% upside.
MM remains bullish US stocks into Christmas
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