Info!! Sector Update For June 14Th

Last week's sector review constitute that industrial in addition to consumer stocks were showing Technical Strength, reflecting hopes of economical recovery. This calendar week nosotros come across a pullback inward the short-term trending of those sectors, equally solely applied scientific discipline shares gained forcefulness on the week. H5N1 await at the status of each of the sectors equally of Friday's closed shows that solely liberate energy in addition to tech shares are demonstrating robust uptrends. The repose are quite to a greater extent than or less neutral levels, suggesting hit fountain marketplace position conditions:

MATERIALS: +200
INDUSTRIAL: +140
CONSUMER DISCRETIONARY: +100
CONSUMER STAPLES: -20
ENERGY: +280
HEALTH CARE: +140
FINANCIAL: +120
TECHNOLOGY: +320

Despite a novel high closed inward the large cap indexes, many sectors are non participating inward the strength. I volition last tracking the Technical Strength (short-term trending) of the stocks inward my basket, besides equally 20-day novel highs/lows amongst daily updates via Twitter (follow here). As long equally we're making fresh toll highs, it's hard to last outright bearish on the market, merely the means the marketplace position has been making those highs has been less than inspiring in addition to does non accept me chasing strength.
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Info!! Indicator Update For July 14Th

Last week's indicator review suggested that nosotros were probable to run across farther weakness, given the potent downside momentum going into the week. We did, indeed, larn a follow through to the downside, taking out the of import lows from May in addition to June. This turned the sector trends bearish in addition to expanded the release of stocks registering fresh 20-day lows (middle chart) earlier Monday's solid bounce.

That bounce took us from a moderately oversold degree inward the Cumulative Demand/Supply Index (DSI) to a neutral reading (top chart). Note how downside momentum inward the DSI did non confirm the recent lows, something we also saw inward the Cumulative Adjusted TICK. I volition hold out watching closely to run across if cost weakness going frontwards is increasingly accompanied yesteryear non-confirmations of momentum in addition to strength. That would advise that nosotros rest inward the make defined yesteryear the May/June highs in addition to lows in addition to could motion good into that make from electrical flow levels.

I perish on to persuasion the market's activity every bit to a greater extent than typical of a correction inward a bull marketplace than every bit the offset of a novel comport market. This is supported yesteryear the relatively little correction inward the advance-decline describe of piece of job specific to NYSE mutual stocks (bottom chart; mad props to the splendid in addition to much recommended Decision Point site).

An expansion of novel 20-day lows on subsequent marketplace weakness would violate this scenario in addition to signal to a to a greater extent than pregnant marketplace correction. I volition hold out tracking that in addition to other marketplace indicators inward my intraday Twitter posts (follow here) to justice how nosotros are trading inside the extended marketplace range.
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