I last wrote about the World Market Index on August 30.
Since then, price did retest (and break above) the 1950 major resistance level to make a new three-year high, as shown on the Daily chart below. It closed just above that level on Friday.
Notwithstanding this year’s push higher (once it broke above above the prior year’s congestion zone), the RSI, MACD, and PMO technical indicators have failed to make a series of higher swing highs since mid-May…suggesting that market enthusiasm is waning in world markets, in general.
The GBP/USD Forex pair has rallied to the underside of major price resistance, as shown on the Monthly chart below.
Watch for a breakout (and hold) above the current level, accompanied by a continued rise in the Momentum and Rate-of-change indicators, to confirm that a further rally is sustainable in the face of ongoing Brexit negotiations.
I last wrote about the percentage of stocks above a variety of moving averages in my post of September 8.
In the week since, buyers scooped up stocks in all the Major Indices, leaving only one minor group in the “below-50% category,” as shown on the following tables.
It’s all about the Technology and Healthcare sectors this year, in terms of gains made, so far, as shown on the following 1-year charts and year-to-date graphs of the Major Indices and 9 Major Sectors.
The laggard, Energy, may be poised for a recovery, if it can hold above its downtrending 50-day moving average.
The Materials sector is on the verge of new breakout. Keep an eye on GOLD and Gold Miners ETF, as I’ve recently described here and here.
The Russell 2000 Index is still mired in a large-scale sideways consolidation zone. Watch for any breakout (and sustained hold) above this zone as a potential signal of renewed and serious riskier asset-buying in the markets, in general. (more…)
Price on the following GDX Monthly chart is currently being squeezed in between major resistance of a 23.6% Fib retracement level and a recent breakout above a long-term downtrend line.
We’ll see if it continues to rally — maybe to 30.00 or even 33.00 — but there is a lot of overhead price supply, so that could be quite a long shot. I’d like to see Money Flow firm up on any further advancement, as that indicator is currently in downtrend on this longer timeframe.
Price on three top Insurance ETFs has been dropping since mid-August, as shown on the following Daily charts of IAK, KBWP and KIE. In the process, they made some extreme lower swing lows on each of their respective three technical indicators, suggesting that further weakness lies ahead.
As of Friday’s close, they are trading around their 200-day moving averages, so failure to regain an upward bias from that level could spell further sharp drops for these ETFs. Watch for any major volume spikes on further weakness to indicate possible panic selling. In the short term, we may, first, see a retest of their 50-day moving average (possible “Dead Cat Bounce”) before the next leg down occurs. (more…)
I last wrote about the Financial ETF (XLF) on July 11th.
Since then, it failed to hold a brief breakout above the 25.00 major resistance level (convergence of 40% Fib retracement and upper channel), as shown on the following Monthly chart.
Price is sitting at the bottom of the upper quarter of a long-term uptrending channel…a segment that it hasn’t typically remained in for very long, or ventured above, since it began its long ascent from its 2009 lows after the financial crisis. (more…)