8 June 2020 – Indices powered upward in Overbought conditions

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

Indices upTrend continues.

/CL – UpTrend. /GC – DownTrend and in a Squeeze. /ZB – DownTrend. HYG – UpTrend. DBC – UpTrend.

Junk bond (HYG) and commodities (DBC) is in upTrend which is rather bullish for the market.

$DXY – DownTrend. EUR/USD – UpTrend. USD/JPY – UpTrend.

Market Internals
Market Sentiment – Extremely Bullish. Put/Call ratio – 0.457. Market Breadth – sloping upward showing more gainers than losers. Volume Acc/Dis – sloping upward and showing accumulation. Vix –25.81. Vix Futures – 26.10. Skew – 129.11.

The indices continue to power upward. Bond market is in a DownTrend. Gold has pulled back and is in a downTrend. US dollar index is in a down trend and the indices are in an uptrend. Market Internals are showing very bullish signals and are in overbought conditions. The prognosis is for a bullish bias in the market but with caution.

Relative Strength – Sectors.

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

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

Indices/Indexes as of close of 8 Jun 2020

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