Many growth stocks are trading well while the market dances in no mans land. The FOMC meets Tuesday and Wednesday with Yellen's next press conference. The low rate trade is standing on shaky ground. TIPS suggest we're at a very important point in the rate and inflation picture. All of this occurring while emerging markets are staring off the ledge. Dammit, Janet, don't let us down!
Indicator Indications
Vol doesn't suggest we've seen a meaningful low. Note the 100 day moving average acts as support once again in the S&P 500.
The stock only advance-decline line had a nice bounce, but not the type of follow through we'd expect at a meaningful low.
The Smoothed NYSE McClellan Oscillator is also not showing signs of a meaningful low.
The show-me tell-me ratio has broken out in a big way. This ratio can be used to measure market breadth trends. However, right now this move is showing us the effects of a sharply rising dollar are being realized.
Utilities are testing long term support into the FED. Well rate trade, whattaya got?
Retail continues to lead throughout the market correction. Note it really strengthened as Gas has pulled in.
Defense doji'd at the 10 week MA. Momo stocks in the group continue to trade very well including ATRO and GY (no positions).
Energy
Crude crumbled out of it's month long range at the end of the week. New lows appear imminent.
Shell gave up a long time pivot level after trying to base for months. The major integrated oil and gas companies must be hurting in a big way. Ratchet down those earnings expectations folks. (no position)
Japan responded strongly to early week selling with a bullish outside week. This continues to be the leader and the best international ETF.
The World Index couldn't close too far below the glorious 10,20,40 week moving average confluence. It's time to step up global equity bulls.
The Emerging Markets are testing a key support. What a nice risk reward buy spot. The price structure isn't pretty, but it is a just a range bound market. If this loses 36, how will there not be a big drag on US stocks?
Russia dropped sharply into a multi-year pivot. BTW, anybody see Putin lately ;) ?
For more: the top reads of the week
Thanks for reading!
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