Last week's indicator review establish that nosotros had retreated from a momentum peak, exactly could probable sense higher prices going forward. Little has changed since that report; upside momentum has waned, exactly toll has corrected alone modestly.
We tin run across from the Technical Strength (a proprietary short-term mensurate of trending) of the sectors that most of the sectors stay inwards a bullish mode. The exceptions are the commodity-related sectors, Materials as well as Energy, as well as the uncertainty-laden Health Care stocks. Particularly rigid are the Consumer Discretionary, Financial, as well as Technology areas, suggesting that we're responding to themes of strong economical performance. Most of import from the advantage indicate of the sectors is that nosotros appear to endure correcting via sector rotation, rather than past times wholesale selloff.
Momentum, equally measured past times the Cumulative Demand/Supply Index (middle chart), has moved toward the zilch area. In a bull mode, nosotros tin larn successively higher toll highs on lower Cumulative DSI readings earlier the marketplace position equally a whole turns over. New 20-day highs alone slightly outnumbered novel lows on Fri (bottom chart), alongside the 20-day lows expanding to over 500. This is a mensurate I'll endure watching for possible farther deterioration. As long equally novel highs outnumber novel lows, I view the intermediate-term tendency to endure bullish.
While the tendency remains higher, I am vigilant for divergences that could present upward if nosotros exam the bull marketplace position highs. Those would convey me cautious virtually chasing the upside, equally nosotros could run across farther rotation as well as correction earlier starting whatever fresh leg higher. As always, I'll endure updating indicators daily via Twitter earlier the marketplace position open.
.
No comments:
Post a Comment