Summary: Longer term, markets remain underpressure in bear phases with extremely high volatility, though we have had a good bounce off the lows and market internals are confirming the recent move. We expect volatility to remain elevated.

Risk On

• Short-term, we saw markets break out positive on price, a mean reversion move. (+)
• Volume patterns confirm the positive price action this week with more accumulation days than distribution. (+)
• All sectors were up this week, led by Technology and Consumer Discretionary, with the exception of Gold Miners and Consumer Staples. (+)
• The McClellan Oscillator flipped strongly positive, though Advance-Declines and Up-Down Volume are overbought. (=)
• New high new low ratio continued to improve and we had confirmation of strength with a new Profit Navigator signal based in part on the ratio. 
• The color charts (moving average of stocks above key moving averages) is starting to turn positive on their short-term readings, though still negative on the 50 and 200 day periods. (+) 
• Growth is outperforming value on a short-term basis, a reversal of the recent trend. (+)
• Bitcoin both held up better in the crash (acting like a risk-off asset) and recovered with the market this week (acting like a risk-on asset). Our CryptoPulse model caught the rally on strength this week. (+)
• Copper recovered back into a bull phase, a potential signal for strong demand. (+)
• Seasonally, this period tends to be strong, though markets continue to lag their average for this period. (+)

Neutral

• All the key indexes remain in bear phases and are oversold on Real Motion on a longer-time frame. (-)
• Risk gauges improved from strongly negative to neutral. (=)
• Volatility came off significantly with the market rally, but remains elevated over key levels. (=)
• The number of stocks above key moving averages improved off its low, but is overbought on the short-term. (=)
• Foreign equities continued to outperform U.S. markets with more established foreign markets doing particularly well and matching its 2007 highs. (=)
• Gold hit new all-time highs this week before putting in a bearish engulfing pattern, potentially pointing towards continued mean reversion. (=)
• The dollar halted its drop and provided a little more stability to this market. (=)
• Concerns about U.S. debt instruments have abated somewhat but remain elevated in this environment. (=)
• The Modern family had a muted read with Grandma Retail and Tramsports lagging but Semis and Biotech doing well.. (+)

Risk Off

• All the key indexes remain in bear phases and are oversold on Real Motion. (-)
• Soft commodities (DBA) moved into a bullish phase which could indicate continued inflationary pressures. (-)
• Oil is in a bear phase and failed to recover this week with the rest of the market, pointing towards lower demand. (-)