Summary: With S&P and NASDAQ hit by cupid’s arrow, and growth stocks, semiconductors, and foreign equities leading this week’s bounce, market’s are seeing green not red.

Risk On

• Three out of the four indexes closed positive on the week. The DOW, QQQ, and SPY all closed in bullish phases with the SPY and QQQ at new all-time high closes. (+)
• Eleven out of the fourteen sectors were up on the week led by Technology and Transports. (+)
• Foreign equities put in a strong performance, led by China up over 7% for the week. (+)
• The McClellan Oscillator regained positive territory by Friday’s close for both the S&P and NASDAQ, confirming positive price action. (+)
• On a short-term basis, the New High New Low ratio flipped positive for both S&P and NASDAQ. (+)
• Cash volatility got hit and is confirming the strength in the market as it pushes to new highs. (+)
• Growth stocks have regained leadership while Value remains in a bull phase, both bullish for the market. (+)
• The Modern Family improved a little as semiconductors regained a bullish phase and leadership on our Triple Play indicator and transports put in a strong week. (+)
• Foreign equities exploded higher with emerging markets leading and outperforming the SPY on a short-term basis. (+)
• The dollar looks under pressure and moved into a confirmed warning phase. (+)

Neutral

• Looking at the moving average of the percentage of stocks above key moving averages (Color Charts), gives a highly mixed picture with the short-term averages improving across the board. (=)
• Gold closed at new all-time highs on a weekly basis, although it closed down over 1.5% from those levels on Friday. The long-term trend and breakout over recent highs is still bullish. (=)
• Interest rates have chopped around their 50-Day Moving average over the last couple weeks. (=)
• Soft commodities closed on decade highs. (=)

Risk-Off

• Volume patterns remain mixed at best, however, IWM, the weakest of the key indexes right now, had zero accumulation days over the last several week. (-)
• Despite the market closing around all-time highs, the risk gauges remain negative. (-)