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17 December 2020 – Bulls continue running

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

The indices continued to make new all-time highs. The Russell 2000 is trending strongly. UpTrend remains.

/CLUpTrend and upward momentum. /GCUpTrend and Upward momentum and in a preliminary Squeeze. /ZB – DownTrend and sideward momentum and in a Squeeze. HYGUpTrend with sideward momentum and in a preliminary Squeeze. 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 Squeeze.

Market Internals
Market Sentiment – Extremely Bullish. Put/Call ratio – 0.45. Market Breadth – sloping downwards showing more gainers and losers. Volume Acc/Dis – sloping upwards and showing accumulation. Skew – 147.079. Vix – 21.93.

Market internals continue to show accumulation. Skew is above 142 giving warning of a Fat-Tail event. UpTrend remains intact but warning bells are ringing.

Relative Strength – Sectors.

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

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

To Your Wealth!
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