#StockMarket officially back from Vaca & back in the saddle. The call last week to fade $QQQ was the correct one. -5.7% peak to trough, & the argument for rotation pot'l also occurred. That said the mkt is stubbornly resilient and tough to be too bearish, yet i remain cautious: 
#StockMarket $QQQ weekly ugly candle on elevated volume and last time we saw that happen, more weakness ensued. RSI continues to neg diverge & now threatening to break the RSI trend line. MACD neg divergence as well w/ recent lower high and neg cross again....
#stockmarket #SPX looks much better and arguably looks and feels like wants to break out. meaningful supply zone ahead to be aware of w/ a break higher of last wk high, w/ new tgts 3257 and Covid gap resistance of 3360. pot'l for SPX +MACD monthly cross soon = bullish MT....
#StockMarket the McClellan Summation index w/ Demark overlay correctly signaled the rotation into laggards trade last wk & now on day 2 of px flip. I also posted this chart specifying as an area to see a pot'l double bottom for equal weight #SPX vs $SPY. big bounce as shown....
#StockMarket but with the recent bounce in the #SPX, stocks trading above the 200 day now with a new Demark Seq 13 sell while also entering the polarity resistance band....
#StockMarket and the cum Ad/Decline index also caught its first Demark Seq 13 sell last wk while also entering pre-Covid resistance levels. Turning down here would be a bearish development IMO....
#StockMarket much talked about Put/Call remains massively complacent. in fact, every time we've entered my complacency band the mkt saw meaningful retracements - timing is always hard based on this but it certainly has to have you concerned....
#stockmarket bonds have remained stubbornly low & certainly not confirming the equity rally. the bond mkt is massively larger than the equity mkt, so non-confirmation here needs to be noted. in fact, it looks like it wants to break out which would be negative equities. long $TLT.
#stockmarket #USD has importance here as well since spikes in this ratio of USD/ $SPY have been met w/ equity underperformance. current ratio now showing a pot'l Demark 13 combo buy as early as tomorrow. equity Bulls dont want to see this inflect. watching carefully....
#StockMarket Also something to be mindful of: Univ of Michigan consumer confidence rolling over and likely will get worse if Covid related shutdowns continue. This is a major headwind for the economy/mkt as 70% of GDP is tied to US consumer consumption....
#StockMarket the consumer discretionary vs staples ratio $XLY vs $XLP (measure of risk appetite) has now broken trend and has that rollover look. not bullish if this continues to leak....
#StockMarket Tech vs FIG ( $XLK vs $XLF) is a chart i've shown before. eerily similar to tech bubble days where the ratio got so stretched and then collapsed sinking the mkt with it. demark 9 sell at recent high and now starting to curl down. bulls dont want to see this get worse
#StockMarket $SPY vs $TLT ratio or #SPX vs bonds also showing a new demark 13 sell - last time this turned down the mkt lost +7%. long $TLT as a hedge just keeps looking better and better. $TLT also still has Demark propulsion up tgt of $169.72. Chart looks great too...
#stockmarket Valueline Index also bounced with the rotation trade - found support at the 50% retracement level and now back into resistance at 61.8%. i'll be watching...
#stockmarket Also finally got the first Demark 13 sell on the Russell ( $RTY) to go along with the #nasdaq and #SPX exhaustion counts i've references recently. $IWM will also likely post this wk. all this happening around the 200 day MA so should be an interesting wk.
#stockmarket #Dow also looking like it could post its first Demark 13 sell this week after printing an Aggressive 13 sell last wk. current 10 count so could print as early as weds. The 13 Demark combo buy marked the lows for the mkt so this does have relevance IMO...
#StockMarket my conclusion remains the same. be cautious based on the aforementioned but not overly bearish until price agrees. big mkt moving catalysts & ensuing mkt reaction could be telling: new Euro & US stimulus, vaccine news, pot'l for further shutdowns. enjoy your Sun
