Rotation Report: ice out

The move of the week was Nat Gas after gaining a cool 13%.  The weekly MACD crossed positive here and is still quite oversold.  There sure seems like there is more upside coming throughout the winter.  BTW, it's f****** cold here in the midwest!

Shifting to the Equity markets, VIX term structure continues to probe further into the toppy zone.  Given the sideways action in most of the indices, bulls would've preferred to see this measure pull back.  Well, we've got a LOT of bulls now and some need shaken out.

The Microcaps have stalled out at resistance.  All the moving averages are amazingly flat

Alibaba has been very strong as it rides the upper bollinger band higher, and now it seems like weekly they are announcing smart business moves.  It's an obvious dip buy candidate.

Long term treasuries are trying to base out at a long term pivot level.  The market is healthy even though the large tail is ugly.

Groups


The broad biotech ETF briefly broke above the spring highs.  At the same time this popped out of the rising channel.  It's worth watching the next move here.  It may want to test the channel's lower boundary in the high 140's.

We can also see a rising channel in the XBI relative strength.  Note the lack of new RS highs.

Energy Producers are trying to break meaningful resistance.  Note RS already broke out.

Shifting to the internals of broad energy ETF XLE, we see the Advance-Decline line is breaking higher over the same resistance faced by the group.

We also see XLE relative strength breaking a 2 month downtrend.  Money is rotating to the group.

The Natural Gas Index is testing it's falling 50 day MA and upper bollinger band as RS broke short term resistance.

Lest we forget the Miners.  The whole mining group is seeing plenty of buyers in broken stocks.  There volume last week was insane!  

The consumer ratio is testing a long term support line.  Will it hold or fall out of bed?

Retail really started to show strength last week as shown via XRT RS.

Home Builders broke resistance from the start of the year.  Is that a monster ascending triangle in the works?  

INTL

Brazil found buyers at the 618 fib retrace.  The election lows at 39 are BIG TIME.

Japan is at a key confluence.  Is QEinfinty going to help Japan?  If you think it will, here's your shot

Currencies

The Dollar is reaching resistance and the RSI is forming an M that occurred in prior equally strong rallies.

The short yen ETF met it's measured move last week.  The whole weekly candle is outside of the upper bollinger band.  Maybe it's due for some rest.

Commodities

Oil found support at an old major pivot in the 76-77 area.  It's hard to be negative with this next support here.

Trade 'em well!