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Tuesday, May 17, 2022--Mptrader Pre-Market Update:WMT (Wal Mart) Earnings Reaction... This is what we discussed yesterday AM about WMT's technical setup: The $64,000 technical question concerning WMTis whether or not any forthcoming negative reaction will fully test BOTH the very modestly up-sloping 100 AND 200 DMAs, now clustered at 144.70/80? My near and intermediate-term pattern and momentum work argue that a positive reaction to earnings MUST climb and close above 151.00 to trigger nearest-term upside reversal signals off of last Friday's low at 146.14 (9% off of the 4/21/22 ATH at 160.77). In the absence of a close above 151.00(just a 1.
Failed to hold reasonable support yesterday morning as (i)-(ii) start off the low last week and the failure to even hold the 76.4% last night made it more likely the low last week would at least get nominally broken. It has not done so just yet but closer enough now that even if it does not actually break it is just better to count this as Avi's yellow fifth.It might even be possible for the SP to open holding 3912, but I am not holding my breath and probably better they are not off by that much on subwaves.
With the market still pushing the prior lows overnight and this morning, I have no clear indications that any bottom has yet been struck. In fact, the rally off the low has been quite overlapping. Of course, those bullish could claim this is a leading diagonal off the low. But, as most of you know, I do not trust leading diagonals as trading cues, as they are too similar to corrective structures. So, my overall perspective remains the same.
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