It is ironic that right when most Bears where capitulating, a geopolitical event in a small country far away from the US started something that may potentially lead to the next Bear Market and actually trigger a global meltdown that could make the 2008 crisis look like a small correction.
Further to my last Weekly Market Update, this week's update will look at:
- 6 Major Indices
- 9 Major Sectors
- Bank Stocks
- AAPL and AAPL:NDX Ratio
- 30-Year Bonds
- U.S. $
6 Major Indices
As shown on the Monthly, Weekly, and Daily charts below of the Major Indices, the Stochastics indicator is well in overbought territory on all timeframes (although the NDX and RUT are slightly below on the Daily timeframe), and the Indices are range-bound and trading at/near all-time highs.
I mentioned in my post of February 27th that "market participants have recently been favouring large-cap, more defensive, stocks over riskier, high-beta small-cap and tech stocks, as they have been grinding higher toward their all-time high levels. I'll be watching to see if money begins to start flowing into small-cap and tech stocks any time soon to signal that the markets are willing to take on more risk that may be needed to push all of the Major Indices to new all-time highs and sustain that kind of momentum going forward for the balance of the year. Otherwise, we could see some serious profit-taking and pullback begin in the not-too-distant future in all Indices."