Trending Review for next week (Week 36)

The markets were all up last week and more or less reversed their downward trend from August completely. There are many reasons the experts are talking about. I do think that business’ ability to eke out earnings gains even is this environment (so far) is the big reason.

I wrote midweek whether the trending will continue to improve through the rest of the week. And it did. So now, the chances of markets continuing to go higher have improved and the risk is to the upside. That does not mean we cannot still have a downturn of course. But it will likely take a shoe to drop for that to happen. The happy path is up.

Major Markets

The SPY and QQQ are back perfectly bullish.

SPX Sectors

Interesting to see the defensive sectors doing poorly. That proves the bullishness in the markets.

Alternate Sectors

They all look ok, good or great. No one looks bad.

Magnificent 8

As close to perfect as it can get.

So, after 3 weeks of losses in August, we have now had 2 strong weeks of gains. The markets are looking bullish again. There also does not seem to be strong catalysts either way for the next week or so. So, I expect some sideways to upward action.