Blogs -Weekly Broad Market Levels: The Next Major Inflection Point

Weekly Broad Market Levels: The Next Major Inflection Point


September 23, 2022

author

Knox Ridley

Portfolio Manager

Weekly Broad Market Levels: Major inflection point next, and what’s below the June low.


Last week we discussed the importance of the 3900 vs 4120 price range. Whatever level broke first would likely determine the rest of 2022. If you’ve been following our previous broad market analysis, we’ve tried to help investors get on the right side of trend changes in this challenging bear market. This week, we discuss what needs to happen in order to see a market low. Find out what the weekly market signals are telling us about the current market and learn about how the I/O Fund approaches risk and opportunities in such an environment.

With the break below 3760 today, we now know what the market has planned. The 3908 SPX level remains the level that must be broken if we are going to see any bullish momentum return to this market. In the meantime, rates and the USD continue their push higher, as equities continue to point towards the 3954 support zone. The Dow, Financials, Semis, and also the Global DOW, including the German DAX, have broken their June/July lows with the move today. We are trending, once again, very sharply into our next inflection point, which starts next Monday and lasts into Oct. 3. We will be looking for some type of temporary low next week. If this bounce remains weak, we will add it to our hedge.

Broad Market Levels Video Timestamps
00:00 - Key Market Levels - Below 3900
04:10 – Potential Paths This Bear Market Can Take.
06:32 - Secular Bear Markets
08:39 - The Fed and Rates 
13:05 - Crude Oil
13:42 - U.S. Dollar

The Market Broke Below 3900 - What It Means for Investors Now

In this week’s video, we point out major support zones and what they mean for the current bear market. Watch 3760 SPX as the final support zone, which needs to hold, if we are going to see a renewed bull market in 2023. On the other hand, if the SPX breaks below 3760, odds favor that it will drop down to 3,545.


A Look into I/O Fund’s Portfolio Strategy

If the bounce from 3,760 is strong and breaks past 3908 – which would be another key level – we will take that as a signal that a meaningful low is in, and the I/O Fund will be prepared to be aggressive on the long side of this market. If, however, the succeeding bounce is weak and unable to break above 3908 the I/O Fund will add their hedge back. Advanced premium members get access to hedge signals alongside text and email trade alerts of every portfolio buy and sell.


How Do Bear Markets Play Out?

Aside from the current state of the market, we also briefly touch on Secular Bear Markets, and how they play out over time. We look at the one that played out between 2000 to 2009 as an example and show the opportunities on both the long and short side.


Supporting Markets are Suggesting a Meaningful Low Sooner (U.S. Dollar, Crude Oil, and Equities)

Finally, we look at the state of supporting markets. Rates seem to be close to a large-degree trend change, and it looks like they may start trending lower into 2023. The dollar is also coming close to confirming a large top, which would further support a renewed uptrend in equities. Crude oil also continues to remain low, and although it looks like a fifth wave push to new highs is likely, it hasn’t shown any major changes as of yet. The dollar, on the other hand, continues to disappoint, with bears failing to break through 107. Even so, the dollar is close to a large top, which would further support equities.


“The Bond Market has not signaled in an imminent Recession.” - Knox Ridley, I/O Fund Portfolio Manager


The Importance of Price Action Going into Next Week

Next week is going to be important. Wednesday is when the next major inflection point will start. In the rest of the premium webinar, we take a look at why price action is going to be key when predicting when the market will move. To watch the full premium technical analysis where we also review price action for FAANGs and three growth tech stocks we are targeting to own, sign up here.



The Next Inflection Point Starts on Monday and will last until October 03

Subscribe to our Free Stock Analysis Newsletter with gains of up to 403% so you can learn how to navigate the next inflection point which starts next Monday and will last until October 03, 2022. 


Catch up on previous Free Technical Analysis: Broad Market Levels

In last week’s broad market levels update, we explore potential market scenarios into the end of 2022. With the help of basic trend analysis, we hope viewers will be able to filter their emotions, so they can be on the right side of trend changes. We also cover September 16th's quadruple witching event, he details what supporting markets contributed to this bear market and ends the technical analysis by discussing the market impact of a potential recession in 2023.

About I/O Fund Premium Stock Investing Services

Premium Members currently enjoy all 7 Premium benefits below.

  1. Premium library of institutional-level research and analysis, including fundamental stock analysis and advanced market signals on technicals and macro analysis.
  2. Weekly Webinars on advanced market signals and broad market, plus quarterly portfolio reviews on Long-Term Buy and Hold tech stocks.
  3. Technical Analysis on stocks and Broad Markets with charts on all major US markets, analysis of inflation and growth, as well as 60 global markets to help us focus on risk/reward for entries and position our portfolio based on the macro-environment.
  4. An Active Forum made up of a community of like-minded investors with robust conversations including both fundamental and tech product analysis.
  5. A completely Transparent Portfolio made up of long-term buy and hold positions, crypto, and Long/Short Momentum positions.
  6. Trade Alerts are sent directly to your phone via SMS and email.
  7. NEW! Automated Hedge with advanced signals to help spot approaching risk in the markets, with a 67% win rate going back to 2003 with only 40 signals triggered.

Sign up for Premium

About I/O Fund Portfolio Manager Knox Ridley

Knox Ridley began consulting on portfolios in 2007 and is an experienced growth investor in both bull and bear markets, which is hard to find these days. As the portfolio manager of the I/O Fund, he beat the top-performing funds on Wall Street in both 2020 and in 2021. His real-time trade notifications to premium subscribers have garnered 27 entries with over 100% gains in the last two years. Knox began his career as an ETF wholesaler in 2007 before becoming a portfolio consultant for large RIAs, FAs, and Institutional accounts. He is very keen on macro trends and is trained in Fibonacci Trading, Elliott Wave theory, as well as Gann Cycles. He also uses classical technical analysis to manage risk and identify great risk/reward setups. Knox is known for increasing and decreasing allocations for record-breaking returns.

To get more free stock analysis on fundamentals and technicals, sign up for I/O Fund's free newsletter with gains of up to 403% - Click here.
Subscribe to Free Newsletter

Gains of up to 2,160% from our Free Newsletter.


Here are sample stock gains from the I/O Fund’s newsletter --- produced weekly and all for free!

2,160% on Nvidia

675% on Bitcoin

*as of Mar 27, 2025

Our newsletter provides an edge in the world’s most valuable industry – technology. Due to the enormous gains from this particular industry, we think it’s essential that every stock investor have a credible source who specializes in tech. Subscribe for Free Weekly Analysis on the Best Tech Stocks.

If you are a more serious investor, we have a premium service that offers lower entries and real-time trade alerts. Sample returns on the premium site include 3,430% on Nvidia, 915% on Chainlink, and 1,020% on Bitcoin. The I/O Fund is audited annually to prove it’s one of the best-performing Funds on the market, with returns that beat Wall Street funds.

beth
head bg

Get a bonus for subscription!

Subscribe to our free weekly stock
analysis and receive the "AI Stock: 5
Things Nobody is Telling you" brochure
for free.

More To Explore

Newsletter

I/O Fund reports a 210% cumulative return, surpassing top tech ETFs and institutional portfolios with a 35% gain in 2024. Source: YCharts and InsiderMonkey.

I/O Fund Reports 210% Cumulative Return -- Ranking Above Wall Street's Best

In 2024, I/O Fund posted a 35% return, significantly outperforming popular tech ETFs, which recorded an 8% return over the same period. On a cumulative basis, the results translate to a remarkable 219

March 31, 2025
Chart showing retail investor losses compared to institutional investors, highlighting market volatility and the impact of high-frequency trading.

The Harsh Truth: Retail Investors Take the Brunt of Market Losses

Retail investors face significant disadvantages in the stock market, often underperforming institutional investors by a wide margin. Studies show that high-frequency trading firms dominate market acti

March 28, 2025
NVIDIA Blackwell Ultra GPU unveiled at GTC 2025, revolutionizing AI and HPC with unprecedented efficiency and power.

NVIDIA Blackwell Ultra Fuels AI & HPC Innovation, Efficiency and Capability  

NVIDIA’s latest Blackwell Ultra GPU, unveiled at NVIDIA GTC 2025, is transforming AI acceleration and high-performance computing (HPC). Designed for the “Age of Reasoning,” these cutting-edge GPUs del

March 21, 2025
Futuristic AI data center featuring NVIDIA’s GB200 Superchip, designed for AI superclusters, high-performance computing, and generative AI training with up to 27 trillion parameters.

NVIDIA’s GB200s for up to 27 Trillion Parameter Models: Scaling Next-Gen AI Superclusters

Supercomputers and advanced AI data centers are driving the AI revolution, enabling breakthroughs in deep learning and large-scale model training. As AI workloads become increasingly complex, next-gen

March 21, 2025
Nvidia CEO Jensen Huang discusses AI market dominance at GTC 2025, addressing demand concerns and future growth projections.

Nvidia CEO Predicts AI Spending Will Increase 300%+ in 3 Years

Nvidia has traversed choppy waters so far in 2025 as concerns have mounted about how the company plans to sustain its historic levels of demand. At GTC, Huang threw cold water on many of the Street’s

March 20, 2025
AI data centers are driving the AI revolution, but their soaring energy demands pose sustainability challenges. With power consumption projected to rise 160% by 2030, data centers are integrating brown, clean, and renewable energy sources. Goldman Sachs predicts 40% of new capacity will come from renewables, but can solar, wind, and nuclear sustain AI’s 24/7 operations? Explore how hyperscalers are evolving their energy strategies to meet growing AI demands.

AI Data Center Power Wars: Brown vs. Clean vs. Renewable Energy Sources

AI data centers are at the heart of the AI revolution, but their massive energy demands raise critical questions. With power consumption expected to grow 160% by 2030, data centers are turning to a mi

March 19, 2025
Natural gas pipelines supporting AI data centers as energy demand surges, with Texas and Louisiana emerging as key hubs for AI infrastructure growth.

Why Gas Pipelines Are the Unsung Heroes of AI Data Center Expansion

Natural gas is emerging as the backbone of AI data center expansion, with demand expected to reach up to 6 billion cubic feet per day by 2030. As AI-driven infrastructure surges, data centers are turn

March 19, 2025
Alibaba’s AI revenue growth accelerates, but remains significantly lower than U.S. tech leaders like Microsoft, highlighting China’s competitive AI landscape.

Alibaba Stock: China Has Low AI Revenue Compared to United States

Alibaba’s AI-driven cloud revenue is surging with six consecutive quarters of triple-digit growth. However, its AI earnings remain a fraction of what U.S. tech giants report, with Microsoft leading at

March 14, 2025
By 2030, AI data centers may consume 9% of U.S. electricity as GPU power usage surges, with Nvidia’s GB200 reaching 2,700W. To ensure sustainability, data centers are adopting long-term PPAs and exploring high-efficiency energy sources like nuclear and SOFCs.

Unlocking the Future of AI Data Centers: Which Fuel Source Reigns Supreme in Efficiency?

AI data centers are projected to consume 9% of U.S. electricity by 2030, driven by soaring GPU power demands, with Nvidia’s GB200 reaching 2,700W—a 300% increase over previous generations. As AI racks

March 13, 2025
Tesla faces declining deliveries in 2024 and mounting challenges in 2025, with sharp sales drops in China and Europe, margin pressures, and shifting growth targets.

Tesla Has a Demand Problem; The Stock is Dropping 

Tesla’s growth faces major hurdles in 2025 after its first annual decline in deliveries. Sales are plunging in key markets like China and Europe, while margins remain under pressure. Optimism around r

March 07, 2025
newsletter

Sign up for Analysis on
the Best Tech Stocks

https://bethtechnology.cdn.prismic.io/bethtechnology/e0a8f1ff-95b9-432c-a819-369b491ce051_Logo_Final_Transparent_IOFUND.svg
The I/O Fund specializes in tech growth stocks and offers in-depth research for Premium Members. Investors get access to a transparent portfolio, a forum, webinars, and real-time trade notifications. Sign up for Premium.

We are on social networks


Copyright © 2010 - 2025