Founded in 1876 and based in Sweden, LM Ericsson Telephone Co. is a provider of telecommunications products, offering end-to-end solutions for major mobile communication standards. As a major supplier to mobile and fixed networks worldwide, Ericsson equipment is used globally and enjoys a large market share in both emerging and developed markets.

The stock market has settled down over the past couple of days and volume has fallen sharply since we saw huge volume earlier this month. Fortunately, not all that trading was to the downside as there were a few accumulation days. During a correction phase and many times near 'a low,' volume hits very high levels. When the market starts a new uptrend, volume must increase, but will never reach the levels during the decline -- especially when the downtrend had at least a tinge of panic. We have witnessed what is dreadfully called 'a death cross' for the S&P 500 (SPX), the Nasdaq, and the Nasdaq 100 (QQQ) -- but just barely. The S&P 400 had such a cross on April 3 and the S&P 600 on March 18. A death cross is when the 50-day simple average crosses below the 200-day on an index, industry, sector, or individual stock. While there have been some massive SPX declines after a death cross (including 1930, 1937, 1940, 1962, 1969, 1973, 1981, 2000, 2002, 2007, and 2022), there also have been instances where the losses were less than 10% and other times when there was no loss at all. So we view a death cross as a warning, but with a good deal of 'urban legend' baked in. We also have seen some other potentially worrisome crossovers in the SPX, with the 10-week crossing the 21-week exponential (EMA), and crosses involving the 10-week simple/40-week simple, the 16-week EMA/39-week EMA (very close), the 13-week EMA under both the 26-week and 40-week EMA, and the 26-week EMA close to cutting the 40-week for a double bearish cross-over. The SPX has not broken very important support from the 50-month and the 200-week simple averages, which is between 4,665 and 4,690.

Ericsson provides telecom equipment and services that are primarily used to build and operate mobile networks. The firm divides its business into three segments: networks, cloud and software services, and enterprise. Wireless carriers have traditionally been the firm’s primary customers, but it is pushing to cater more to enterprises as well, as both try to take advantage of 5G capabilities and utilize “as-a-service” communications platforms. The company also licenses its patents to handset manufacturers.

Ericsson provides telecom equipment and services that are primarily used to build and operate mobile networks. The firm divides its business into three segments: networks, cloud and software services, and enterprise. Wireless carriers have traditionally been the firm’s primary customers, but it is pushing to cater more to enterprises as well, as both try to take advantage of 5G capabilities and utilize “as-a-service” communications platforms. The company also licenses its patents to handset manufacturers.