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11 May 2021 – Is this the pullback?

Summary (The Week Ahead)
$DJTUpTrend and upward momentum. /YMUpTrend and upward momentum and in a preliminary Squeeze. /RTYDownTrend and downward momentum and in a Squeeze. /NQDownTrend with downward momentum and in a preliminary Squeeze. /ESDownTrend with upward momentum and in a Squeeze.

The indices hits all time high and then pulled back. Momentum has now shifted to the downside.

/CLUpTrend and upward momentum and in a preliminary Squeeze. /GCUpTrend and upward momentum. /ZBDownTrend and downward momentum and in a tight Squeeze. HYGDownTrend with downward momentum and in a Squeeze. DBCUpTrend with upward momentum.

Junk bond (HYG) is range trading and DBC is in a downTrend. Based on this, we can expect a volatile range trading market.

Market Internals
Market SentimentBullish. Put/Call ratio – 0.69. Market Breadth – sloping downwards showing more losers than gainers. Volume Acc/Dis – sloping downwards showing distribution. Skew – 140.12. Vix – 21.84.

Market internals are showing bearish bias.

Relative Strength – Sectors.

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

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

To Your Wealth!
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