Well, a bruising week in equities bruised commodity related stocks but the commodities themselves held up fairly well. ETF's which hold stocks like SLX, KOL, NLR, URA, XLE, XOP, FCG all pulled back. Precious Metals did better. Gold actually broke through a small 2 month resistance line to close higher on the week. GDX closed up near the highs of the week.
Let's start with some positives. $GOLD looks a little better.
Obviously the weakness we have seen on the indexes has affected the breadth charts. I covered that on the attached video.
My observation for indexes like the $NYA - NYSE Stock Exchange is that we are in a situation that usually means lower for longer. Here is the chart for the $NYA. While we don't normally associate this index as the leadership index, it does give timely signals when it breaks trend.
The Canadian Technician video shows the massive breakdown on almost every sector chart. This week the Canadian market started what appears to be a major breakdown. Financials also fell outside their channel and below the 40 WMA. For Canadian investors, huge caution here.
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Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts for Dummies
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The Canadian Technician