If you take a look at the short-term Breadth Indicator, specifically the 10-Day Moving Average, the General Market Indices ($SPY/$QQQ) are all above and remain bullish. Of the five offensive sectors, three are trending up and two are flat. This is mixed action where Consumer Discretionary ($XLY) is flat, Finance ($XLF) flat, Tech ($QQQ) in an uptrend, Industrial ($XLI) in an uptrend, and Healthcare ($XLH) also in an uptrend.
I’d like to see conviction to the upside in the first two sectors if I think that there is enough of a catalyst for the bulls to the upside. The $SPY and $QQQ hit new highs last week and remain in short-term uptrend. But our canary in the coal mine, Small-Caps ($IWM), has yet to hit a new high. Any weakness in the Small-Caps is a potential red flag.
Bonds ($TLT) broke consolidation support to reverse its uptrend last week. The Dollar ($UUP) broke below the triangle trend line last week and remains in a short-term downtrend. Oil ($USO) stalled last week, but remains in a short-term uptrend. Finally, Gold ($GLD) broke support last week and remains in a short-term downtrend.
Have a good trading day and make sure to check out the webinars this week. http://www.tradespoon.com/webinars.php
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