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14 December 2020 – Is the market turning?

Summary (The Week Ahead)
$DJTUpTrend and downward momentum. /YMUpTrend and downward momentum and in a Squeeze. /RTYUpTrend and upward momentum. /NQUpTrend with upward momentum. /ESUpTrend with downward momentum.

UpTrend continues in the indices but momentum in the indices are turning downwards.

/CLUpTrend and upward momentum. /GC – DownTrend and downward momentum and in a preliminary Squeeze. /ZB – UpTrend and upward momentum and in a Squeeze. HYGUpTrend with upward momentum. DBCUpTrend with upward momentum.

Junk bond (HYG) and DBC are both in an upTrend with upward momentum. That is a good sign that we are in an UpTrend market.

$DXY – DownTrend with downward momentum. EUR/USDUpTrend with upward momentum. USD/JPYDownTrend with downward momentum and in a tight Squeeze.

Market Internals
Market Sentiment – Extremely Bullish. Put/Call ratio – 0.547. Market Breadth – sloping upwards showing more gainers than losers. Volume Acc/Dis – sloping downwards and showing distribution. Skew – 139.29. Vix – 24.72.

Market internals is showing distribution. UpTrend bias is not strong but remains intact.

Relative Strength – Sectors.

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

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


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