Reviewing the markets over the weekend led to one conclusion - risk markets are trading at extremes. Markets are very long US equities while leadership is narrowing and a trade war beckons Markets are very short bonds into strong structural support Markets are very long US$ while the rally is ending Markets are very short […]

The US equity market rallied strongly back to the 61.8% Fib retracement on Thursday seemingly on the back of AAPL's breakout and the Nasdaq's successful retest of its 50 day sma support highlighted last week. The question is whether this rally was a last gasp short squeeze or the start of a broader market rally. […]

Last week we saw some cracks forming in the bullish narrative with the FAANGs and Russell (leaders) starting to break down. This is more evidence of a topping market. The US$ continues to stall at resistance while the Euro may still be in a small degree 4th wave triangle. Bonds continue to stair step lower […]

Last week, equity markets stalled at resistance as expected but there is little evidence of a change in the bigger picture trend. While earnings continue to provide a positive backdrop for stocks (backward looking), declining liquidity and geopolitical risks (including trade wars) continue to drag on confidence as investors attempt to climb the wall of […]

Last week, global equities pushed higher with the FAANGS leading the way while Banks and Transports lagged. This week will be important for the bigger picture market structure as the SPX enters our 2800-30 sell zone. Bears want to maintain the inter-market divergence and do NOT want the SPX and Dow to confirm the Nasdaq's […]