Markets were all generally up slightly on the week with the Russel outperforming, closing up over +2% on the week. The Dow and S&P closed on new all-time highs. (+)
Volume patterns remain fairly mixed, with the exception of the Russel, which looks poised to explode higher on price out of a multi-month compression range. (+)
13 of the 17 sectors we track were up on the week led by gold miners, homebuilders, and utilities. Surprisingly, semiconductors was the weakest sector, down -2% for the week. Only 2 of the 17 sectors are not in “bullish” phases. We are giving this an overall positive read for the market. (+)
Metals exploding higher was the theme for the week with Gold hitting new all-time highs. Energy was down sharply on the week, generally a good thing for the consumer. (+)
Market internals improved with the McClellan Oscillator regaining positive territory for both the Nasdaq and S&P and the cumulative advance/decline making new highs for the S&P. (+)
The New High New Low ratio for the S&P improved significantly (and even more so for the Nasdaq) on a short-term basis and looking a bit more positive on the intermediate.(+)
The number of stocks above key moving averages improved and remains bullish, although, on a short-term basis, Small Caps are overbought. (+)
Both Value and Growth closed at new highs and in bullish phases. (+)
All the modern family members are in bullish phases. (+)
S&P color charts remain in gear, though is showing some slowing on the shorter-term basis. (+)
Neutral
Risk gauges moved back to neutral due to the strength in Gold and Utilities. (=)
Foreign equities were marginally down on the week with emerging markets still leading more established markets, likely bolstered by strength in metals and mining. (=)
Soft commodities and copper were down on the week, although remain in bull phases. (=)
Rates remain relatively flat on the week, although the yield curve is no longer inverted. (=)
The 1 to 3 month volatility reading flipped to a risk-on positive reading but cash volatility still remains in a bull phase which is a cautionary read overall for sentiment indicators. (=)
