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13 July 2020 – Indices are taking a breather?

Summary (The Week Ahead)
$DJTUpTrend and in a Squeeze. /YMUpTrend and in a tight Squeeze. /RTY – DownTrend and in a tight Squeeze. /NQUpTrend. /ESUpTrend and in a Squeeze.

The indices pulled back after many days of surging upward.

/CLUpTrend and in a Squeeze. /GCUpTrend. /ZB – UpTrend and in a preliminary Squeeze. HYGUpTrend and in a preliminary Squeeze. DBCUpTrend.

Junk bond (HYG) is sideways and commodities (DBC) is still in an UpTrend. The indices could be consolidating.

$DXY – DownTrending and in a Squeeze. EUR/USD – UpTrend and in a Squeeze. USD/JPY – DownTrend and in a Squeeze.

Market Internals
Market Sentiment – Extremely Bullish. Put/Call ratio – 0.557. Market Breadth – sloping downward showing more losers than gainers. Volume Acc/Dis – sloping downward and showing distribution. Vix –31.04. Vix Futures – 31. Skew – 128.52.

Nasdaq 100 has pulled back and likely to take a breather after many days of new highs. With new stimulus in Congress, there will be new money to push the market up further.

Relative Strength – Sectors.

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

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


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