Telegram

ALERT: Rob’s “Hot” Technical Take on today’s equity sell-off. Cyclicals need to “dig in”

July 9, 2020
ALERT:  Rob’s “Hot” Technical Take on today’s equity sell-off.  Cyclicals need to “dig in”





Question:




Answer:

I like the bounce at the index level after the weak opening but I was disappointed with the cyclical action.

- Internals were weak,
- SPHB broke the 50 and the June 26 lows,
- Small caps weak and banks (KRE) and
- Energy weak with relative performance bleeding.

I was expecting/hoping cyclicals would act better. Ideally/hopefully we're looking at a mini retest/undercut of the June 26 lows but the cyclicals need to start digging in soon.

I'd love to see the VIX take out that 26 support level. Option expiration is next week starting on Wed with index options. So I'm thinking that could hang on the market for another few days but then we head higher. Cyclicals haven't reached extreme o/s yet but they def have worked off the overbought condition from the June 8 highs.

You are trying to access FSI member-only content.
You need to have an active FSI Macro, or FSI Pro subcription in order to read this article.
If you are already a member at FSInsight, please Sign In here. If you don’t have a subscription to FSInsight yet, you can sign up below.

Choose one of our yearly plans to save nearly 20%

We accept crypto via BitPay for yearly subscriptions.
    • Macro
      FSI Macro
      from
      $
      199
      /mo
      billed anually
      Get access to all the macro research on FSInsight
      • Tom Lee's Live Market BLASTs
      • View from Tom Lee
      • Signal From Noise
      • Portfolio Strategy
      • Technical Analysis
      • Granny Shots – Stock Ideas
      • US Policy
      • Live Conference Calls with Q&A
      First Month Free!
    • Crypto
      FSI Digital Assets
      from
      $
      99
      /mo
      billed anually
      Get access to all the crypto research on FSInsight
      • Tom Lee's Live Crypto BLASTs
      • Tom's Take on Crypto
      • Crypto Weekly Newsletter
      • BitDigest Daily Newsletter
      • Crypto Technical Analysis
      • Benchmark Indices Review
      • Bitcoin Valuation & Misery Indexes
      • Live Conference Calls with Q&A
      First Month Free!
    • Macro + Crypto
      FSI Pro
      from
      $
      249
      /mo
      billed anually
      Get access to all the exclusive research on FSInsight
      • Looking at code?
      • I am hidden!
      • FSI Macro
      • +
      • FSI Digital Assets
      • Designed by
      • HANGAR115
      • -
      First Month Free!
Disclosures (show)

Don't Miss Out
First Month Free

first 500 users only