Key Takeaways

  • 1%+ bounce for US Equities seemed encouraging price-wise;  Yet, breadth was negative and few sectors showed much strength outside Technology and Defensives
  • Momentum still negatively sloped (MACD) on daily charts, while RSI not oversold. Index prices have not eclipsed key areas which would suggest immediate gains back to highs
  • Ethereum’s Mkt-Cap Dominance breakout makes this one to watch into mid-December

Snapback rally for $SPX has lifted this to official “No-Man’s Land” which makes for a difficult bullish call for follow-through heading into Tuesday. Downtrends over the last week remain intact & breadth was negative Monday given Tech’s outperformance while many others lagged.  Equal-weighted indices like Value Line Geometric had broken down sharply under trendline support and this has not been recouped.  Overall, rallies back over SPX-4703 will be necessary to have some confidence on this bounce, and meantime, one can’t rule out a retest/minor break of last week’s lows before a bottom is in.

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Europe and most Equal-weighted US Indices still lagging badly

EuroStoxx50 daily charts have grown increasingly worse near-term given the extent of recent weakness.  This is important for...
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