S&P 500, Nasdaq 100 Close To Forming Reversal Candles In Nov.; Bulls’ Mettle Will Be Tested At Nearby Support

posted in: Credit, Economy, Equities, Technicals | 0

With two sessions to go, November is on the verge of flashing a yellow flag on both the S&P 500 and Nasdaq 100. These indices of late have diverged with deteriorating consumer sentiment. In a seasonally favorable period, some key … Continued

Along With Stocks, Consumer Sentiment Tumbles In Mar – Home Prices Worth Watching

posted in: Economy | 0

Consumer sentiment tumbled in March but remains elevated.  The latest collapse in stocks probably played a role.  Another important variable worth watching is home prices, which for years have risen faster than inflation and have been a big tailwind from … Continued

Rates Diverge With Equities – TLT Pushes Through Aug ’19 Falling Trendline

posted in: Credit, Derivatives, Economy, Technicals | 0

The year is quite young, but things have not quite turned out the way bond bears were hoping they would.  The 10-year T-yield last week pierced through trend-line support from last September.  In due course, this likely opens the door … Continued

Amidst Mixed Macro Signals Plus Other Divergences, New Highs In Major US Equity Indices

posted in: Commodities, Credit, Economy, Equities | 0

Amidst mixed signals in the economy and divergences with the bond market and crucial metals, among others, US stocks continue to rally to new highs. US inventories are building – again. In October, manufacturing and trade inventories rose 0.2 percent … Continued

Thursday’s Reversal Opens Door To More Strength, But No Signs Of Risk-On Just Yet

posted in: Credit, Economy, Equities, Technicals | 0

Major US equity indices staged a massive reversal last Thursday, with more strength Friday.  This probably bodes well for bulls near term.  For this to translate into medium-term momentum, investors need to embrace risk-on. Real GDP growth has softened.  Four … Continued

Within Striking Distance Of Record Highs, S&P 500 And Nasdaq 100 Give Out Signs Of Fatigue

Major US equity indices are a stone’s throw away from their respective highs.  Daily momentum indicators are extended.  Breakout retests are the path of least resistance. The FOMC meets this week.  A 25-basis-point cut to a range of 175 to … Continued

For Several Weeks, Bulls Bought Support, Bears Sold Resistance – Latter Could Get Active N/T

August for the most part saw bulls buy support and bears sell resistance.  This worked out pretty well for both camps.  In essence, after a late-July/early-August brief selloff, both put their foot down.  Last week, major US equity indices rallied … Continued

Major US Equity Indices Oversold – On Lookout For Reversal Signal

From trade disputes to declining corporate profits to yield-curve inversion, there is no shortage of issues for worrywarts to worry about.  From recent highs, major US equity indices have dropped in the mid- to high-single digits.  Medium term, more downside … Continued

Amid Divergences, QQQ Bulls Last Week Defend 11-Month Support, But Denied At S/T Resistance

There is no shortage of divergences – be it in macro or other assets, including equities.  Major equity indices peaked early this month but put foot down early last week.  Medium term, building on it further can prove difficult.  Overbought … Continued