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20 May 2020 – S&P 500 heads towards 3000

Summary (The Week Ahead)
$DJTUpTrend and in preliminary Squeeze. /YMUpTrend and in a Squeeze. /RTYUpTrend and in a Squeeze. /NQUpTrend and in a preliminary Squeeze. /ESUpTrend and in a Squeeze.

Volatility is compressed.

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

Commodities is in upTrend which is rather bullish for the market.

$DXYDownTrend and in a Squeeze. EUR/USDUpTrend and in a Squeeze. USD/JPYUpTrend and in a Squeeze.

Market Internals
Market Sentiment – Bullish. Put/Call ratio – 0.683. Market Breadth – sloping upward showing more gainers than losers. Volume Acc/Dis – sloping upward and showing accumulation. Vix –27.99 and Vix Futures – 29.95. Skew – 125.95.

The Squeezes in the indices are indicating that a big move is coming up.

Bond market has pulled back. Gold is in an UpTrend and above $1700 as the indices surged. Market Internals are indicating bullishness. HYG which is the ETF for high yield bonds is in an upTrend. The prognosis is that the market has a bullish bias.

Relative Strength – Sectors.

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

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


To Your Wealth!
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