22 June 2020 – Indices grind upward

Summary (The Week Ahead)
$DJT – Ranging Sideways. /YM – Ranging Sideways. /RTY – Ranging Sideways. /NQ – UpTrend. /ES – Ranging Sideways.

Indices are ranging sideways and is poised to Squeeze upward.

/CL – UpTrend and in a preliminary Squeeze. /GC – UpTrend and in a Squeeze. /ZB – Ranging Sideways. HYG – Ranging Sideways. DBC – UpTrend.

Junk bond (HYG) and commodities (DBC) are range trading.

$DXY – Ranging Sideways. EUR/USD – Ranging Sideways. USD/JPY – DownTrend.

Market Internals
Market Sentiment – Bullish. Put/Call ratio – 0.632. Market Breadth – sloping downward showing more losers to gainers. Volume Acc/Dis – sloping downward and showing distribution. Vix –31.77. Vix Futures – 31.62. Skew – 135.54.

The indices looked poised to surge higher. Every bad news resulted in a minor selloff and has been bought. This is could due to FED action such as buying ETFs which will result in the Japanification of the US stockmarket. The prognosis is for the indices to breakout to new highs.

Relative Strength – Sectors.

On a 3-monthly lookback, the relative strength order of the S&P ETF 500 sectors are XLK, XLY, /ES, SPX, SPY, XLB, XLV, XLI, XLP, XLF, XLE, and XLU.

On a 12-monthly lookback, the relative strength order of the S&P 500 ETFs are XLK, XLY, XLV, /ES, SPX, SPY, XLB, XLP, XLI, XLU, XLF and XLE.

Indices/Indexes as of close of 22 Jun 2020

To Your Wealth!
Would you like to learn to trade stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.