Monday Sector Strength
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
Last Friday's ECRI economic index was a bit encouraging after a scary plunge over the past few months. The index finally stabilized at a low level. It looks forward about 4-6 months, and it indicates weak but still growing economic activity. In other words, no recession, at least not yet. Also, the inflation indicator remains at low levels.
A 3-year review of the intermarket is shown above. Nothing too surprising is shown except perhaps that bonds have traded sideways within a range of 105-115 for a couple years now. Commodities have broken above short-term resistance, and the US Dollar continues its steady decline. We are most interested in equities, which remain in a strong uptrend. After last week's big up move, and since the index is near resistance, we may get a pull back in prices to the break out support level.
