Key Takeaways

  • Tuesday reversed lower after SPX was unable to recapture 4000
  • QQQ might bottom out in early June vs SPY which would be bullish for Growth
  • Energy looks to be 2-3 weeks from peaking out vs. Technology
  • Credit spreads have widened a bit, yet LQD remains in larger downtrends vs JNK
The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members
Still no meaningful change in trend.   SPX failed to climb above 4000 and despite a sharp two-day rally from last Friday’s lows, there hasn’t been any progress in breaking the ongoing downtrend.  Thus, while 1-2 day trends had turned more positive, the larger trend from late March remains bearish, with little evidence of meaningful oversold conditions, nor capitulation.  Movement up above 4000 is an initial requirement before weighing in on a rally extending at this point.  As we’ve discussed on these pages numerous times, more is needed than a single DeMark daily exhaustion signal to trigger a larger rally after a 20% decline in SPX (in my personal view).   Weekly counts remain premature.  However, two interesting points to note: First, there has been a bit more stabilization in trends over the last couple weeks, and prices closed over 5/12’s close.  Second, four sectors were higher in Tuesdayâ€...

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