GoNoGo Charts

EQUITIES REMAIN IN "GO" TREND WITH SPARSE LEADERSHIP FROM TECH AND UTILITIES

Tyler Wood

Tyler Wood

Alex Cole

Alex Cole

CEO & Chief Market Strategist, GoNoGo Charts

KEY
TAKEAWAYS
  • Relative Strength
  • Market Trend
  • Narrow Breadth

Good morning and welcome to this week's Flight Path. We saw some weakness this week as price pulled back a little from all time highs. Momentum cooled, we saw this in the form of Go Countertrend Correction Icons (red arrows) and GoNoGo Trend painted weaker aqua bars. Treasury bond prices gained strength and painted blue bars. U.S. commodity index continued to show market uncertainty and the dollar regained "Go" colors albeit weaker aqua.

$SPY Shows Investors Digesting Gains

The "Go" remained this week but prices cooled as the market absorbed the gains we've seen over the past few weeks. As the week of trading came to a close, we saw weakness as GoNoGo Trend painted a couple of aqua bars. We will now turn out eye to the oscillator panel and watch as GoNoGo Oscillator approaches the zero line. We will look to see if it finds support at this level and bounces back into positive territory. If it does, we will see Go Trend Continuation (green circle) and can expect price to make an attack on a new higher high.

The larger weekly chart shows that the larger picture remains extremely bullish with another strong blue bar painted and price at all time highs. GoNoGo Oscillator is in positive territory but not yet overbought after having found support at the zero level.

Treasury Rates Flash "Go Fish" Bars

GoNoGo Trend was unable to continue painting amber "Go Fish" bars as last week came to an end. As prices rallied from the most recent low, the indicator rolled out of "NoGo" colors and painted a couple of uncertain "Go Fish" bars. It will be important to note now in which direction the trend goes next. If it falls back into "NoGo" bars that could be a positive for stocks, if it transitions from amber to "Go" colors that could pose a problem. GoNoGo Oscillator is riding the zero line where we see the beginnings of a GoNoGo Squeeze building. The direction of the Squeeze break will likely determine price's next trend.

Dollar Recaptures "Go" Trend

After a brief flirtation with a "NoGo" and a "Go Fish" bar, the dollar was able to regain "Go" colors albeit weaker aqua ones. This is an inflection point for the dollar, as we can see that GoNoGo Oscillator is back testing the zero line from below. The oscillator has been in negative territory for a few weeks now, so if the "Go" trend is to survive, it will need to break back into positive territory. If it does, we will likely see the "Go" trend strengthen. If it is rejected again at the zero level, then we will expect further struggles for price.

The weekly chart continues to show us how important these levels are. With price now trying hard to find support at prior high levels from over a year ago, GoNoGo Oscillator has crashed back to the zero line. We will watch to see if it finds support here. If it does, we will see a Go Trend Continuation Icon (green circle) under the price bar as an oscillator bounce back into positive territory will tell us that momentum is resurgent in the direction of the underlying "Go" trend.





Tyler Wood
About the author: , CMT, co-founder of GoNoGo Charts, is committed to expanding the use of data visualization tools that simplify market analysis to remove emotional bias from investment decisions. Tyler has served as Managing Director of the CMT Association for more than a decade to elevate investors’ mastery and skill in mitigating market risk and maximizing return in capital markets. He is a seasoned business executive focused on educational technology for the financial services industry. Since 2011, Tyler has presented the tools of technical analysis around the world to investment firms, regulators, exchanges, and broker-dealers. Learn More

Alex Cole
About the author: , CEO and Chief Market Strategist at GoNoGo Charts, is a market analyst and software developer. Over the past 15 years, Alex has led technical analysis and data visualization teams, directing both business strategy and product development of analytics tools for investment professionals. Alex has created and implemented training programs for large corporations and private clients. His teaching covers a wide breadth of Technical Analysis subjects, from introductory to advanced trading strategies. Learn More