Info!! Indicator Review For June 2Nd

Last week's indicator review noted weakness across many of the measures inwards the wake of a several-day pullback. We've since bounced from those toll lows, but rest good off the highs across virtually of the indicators. Money flows to the S&P 500 stocks expire on to last weak, with divergences mutual since April.

Interestingly, the coin stream divergences jibe what we're seeing inwards the cumulative NYSE TICK (bottom chart), which has shown tepid clitoris since its meridian on Apr seventh in addition to which is currently good off its highs. Unlike coin flow, TICK is non book based, suggesting that we're non but seeing waning summertime volume. Rather, buyer involvement itself seems to last waning since that early on Apr period.

Still, that did non preclude us from making fresh peaks inwards the number of stocks making novel 65-day highs (top chart) during May. Since the pullback 2 weeks ago, the market's bounce has left us good shy of those peaks then far. On Th in addition to Friday, for example, nosotros registered 48 in addition to 57 novel 52-week highs respectively across the NYSE mutual stocks against xvi in addition to eighteen novel lows. By comparison, nosotros had over 150 novel highs 2 weeks ago.

In by indicator reviews, I've noted considerable sector rotation in addition to divergence, fifty-fifty inside the S&P 500 large-cap universe. This continues at acquaint in addition to appears to last a major argue we're non seeing to a greater extent than broad-based clitoris since the January/March marketplace bottom. For example, we're exclusively seeing 30% of fiscal stocks trading inwards a higher house their 20-day moving averages, but 78% of engineering scientific discipline stocks. Materials issues convey shown recent weakness inwards the wake of pullbacks alongside commodities--only 54% are inwards a higher house their 20-day averages--but previously weak wellness attention issues convey bounced, with 73% inwards a higher house their benchmarks.

All inwards all, the weakness inwards TICK in addition to coin flows in addition to the relative functioning of sectors suggests 2 things: 1) that to a greater extent than coin is shifting from sector to sector than genuinely entering the stock market; in addition to 2) that when coin is entering the market, it is doing then selectively (commodity-based themes, technology). This is non necessarily a prescription for a fresh acquit market, but it every bit good is non a company foundation for a sustained marketplace rally. For this reason, as my recent post indicated, I am beingness to a greater extent than tactical than long-term strategic inwards my ain trading.
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