Wed am Technical Video
Fed Day-Eco data largely came in hotter than expected.. good PPI numbers.. Equities really haven’t budged. Most of Europe mildly positive while Asia lower
Trends remain higher, yet breadth starting to give warnings of exhaustion.. with yesterday being DOWN in Advance/decliners.. and Financials breaking back lower again relatively.
Tech AND Financials really need to work for markets to be able to turn higher with any sort of conviction. For now. Markets likely stall out in the next 3-5 days
Yields pulled back yesterday and having a difficult time in pushing higher. And TNX should be watched carefully along with XLF, and XLK
Many sectors will have Demark related Exhaustion by end of week.. and when these all line up in unison.. it should prove difficult to gain more upside
Premkt movers in ENPH, CRWS, KFY, PVTL, FOXA, SYK, ITUS, ESRX, CBS, DISCA, FDC, cAH, EW, S, DOCU higher.. while FLKS, VTVT, BSX, CMCSA, PTN, T, YELP, lower
Right to stay long Discretionary, Healthcare but be far more selective after this recent runup - Look to fade any Technology rally and Financials..
And on a break of 2782.. its right to consider adopting hedges. VIX looks to be close to bottoming. And Demark buys in VXX by end of week
Important to keep Hourly S&P charts handy over the next few days to see exactly when trends might be giving way
Upside should be contained at 2805-2815 while UNDER 2782 should likely start the process of stocks pulling back
GOLD is something which should be close to bottoming sentiment wise.. Technically it hasn’t shown us much.. but will be a viable area to consider above 1309
The near-term range-bound activity could allow for a final pullback and break of this trend down to 1240-5, but downside should prove limited into July and one would use any weakness to buy and then add over 1310
Overall. This move has not started yet.. but something to keep on the radar
Most cryptocurrencies showed extreme weakness overt the weekend and Bitcoin now trading right near April lows and a bit lower than April lows.. yet no real downside acceleration
The volume over the weekend proved muted.. but am on the lookout for a possible bottoming out and stabilization. For now. No real evidence of that in the last couple days