22 June 2021 – A tentative recovery

Indices/Indices as of close of 22 Jun 2021

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

The indices are giving mixed signals. The Dow Transportation is heading downwards but the S&P 500 is heading upwards.

/CL – UpTrend and upward momentum. /GC – DownTrend and downward momentum. /ZB – UpTrend and upward momentum. HYG – UpTrend with upward momentum. DBC – UpTrend with upward momentum.

Junk bond (HYG) and DBC are on an upTrend again. It looks like the pullback has been short.

Indices/Market Internals as of close of 22 June 2021

Market Internals
Market Sentiment – Extremely Bullish. Put/Call ratio – 0.541. Market Breadth – sloping downwards showing more losers than gainers. Volume Acc/Dis – sloping downwards showing distribution. Skew – 160.51. Vix – 16.66.

Market internals are showing bearish bias and the Skew is extremely high. The stage is set for this market to continue to be volatile.

Relative Strength – Sectors.

Indices/S&P 500 Sectors as close of 21 June 2021

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

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

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