Buy and Sell Signals, Risk Analysis, Money Flow, Breadth, Momentum

Michael Pitre Author is a PRO memberHas Had Over 50 Followers Rank: 21 Followers: 78 Votes: 100 Years Member: 10 Last Update: 4 May 2016, 9:35 Categories: Market Timing
Trend Analysis
Swing Trading

etfmaintrends.com

Weekend Update...Apple's earnings shook up the tech sector last week as we saw weakness in other tech stocks and the tech sector etf XLK. QQQ dialy traded down to support and is on a sell signal on the daily and weekly. The risk trade is off right now. On the monthly chart SPY traded up to resistance at the upper bollinger band and backed down which is not a big surprise. On the positive side MACD is turning higher now on monthly SPY. We are now coming into the unfavorable seasonal pattern which begins in May. Something to keep in mind but the market will do what it wants. Earnings in some
key stocks have disappointed the market and the economy is still rather weak with GDP nearing the zero level....although there are still key strong aspects like employment, housing, and the Fed accommodation. The dollar is falling hard now lifting commodities, especially gold and silver. Crude has moved solidly higher in spite of tremendous skepticism by investors.

More earnings report will be forthcoming this week. Energy stocks will do better in the future re earnings as oil looks to have become more stable.

Monetary Policy.........Accommodative....Most Bear Markets Start When Monetary Policy Is Not Accommodative...ie, The Fed Is Tightening Aggressively

Market Breadth..........NY AD Line Under Pressure, NY Up Down Volume Slightly Positive, NY Summation Index Turning Lower

Market Leadership.... Defensive Stocks Lead Rather Than Cyclical Stocks...Preferable For Cyclical Sectors To Lead In Bull Markets...Cyclical Stocks Are Improving Though

Economy...................Business Cycle At All Time High....Strong Labor Market Including Initial Claims, Favorable Housing Market, Favorable Interest Rates and Leading Economic Indicators

Sentiment.................VIX Tested Resistance and Fell back. Put Call Ratio Has Moved Higher.....Fear somewhat increasing.

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As long as this upward sloping bullish channel holds the market is in good shape.

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A Daily Chart of the major 'risk on' indexes.

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Key Chart For Volume Analysis...This chart gives a good understanding of what internals look like from the up volume vs the down volume...has done well big picture

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Market Sentiment With RSI 5 For VIX...RSI 5 got oversold for VIX and Sto for VIX has turned higher.

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