4 May 2021 – Interest rise, Nasdaq tanks

Indices/Indices as of close of 4 May 2021

Summary (The Week Ahead)
$DJT – UpTrend and upward momentum. /YM – UpTrend and upward momentum and in a Squeeze. /RTY – DownTrend and downward momentum and in a Squeeze. /NQ – DownTrend with downward momentum and in a Squeeze. /ES – UpTrend with upward momentum and in a preliminary Squeeze.

The indices are diverging as some are impacted more with interest rates hike.

/CL – UpTrend and upward momentum. /GC – UpTrend and upward momentum and in a preliminary Squeeze. /ZB – UpTrend and upward momentum and in a Squeeze. HYG – DownTrend with downward momentum and in a Squeeze. DBC – UpTrend with upward momentum.

Junk bond (HYG) is range trading and DBC is in an upTrend. Based on this, we can expect a range trading market.

Indices/Market Internals as of close of 4 May 2021

Market Internals
Market Sentiment – Bullish. Put/Call ratio – 0.672. Market Breadth – sloping downwards showing more losers than gainers. Volume Acc/Dis – sloping downwards showing distribution. Skew – 139.23. Vix – 19.48.

Market internals are showing bullishness.

Relative Strength – Sectors.

Indices/S&P 500 Sectors as close of 4 May 2021

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

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

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