Week 12 Mid-week Trending analysis
It is the Apple and Microsoft world. The market just lives in it. There was a report that these 2 stocks now make up over 13% of the S&P 500. The Technology and Communication sectors are the only ones holding up the markets as of now. All other sectors are underperformers.
The markets sold off after the Fed announcement and press conference. My shorts worked out well. Also, precious metals took off as well. Looking at the trending of the major markets though, there is an attempt to reverse and turn bullish. The major markets trending mostly improved.
Major Markets Trending Heat Map
The S&P 500 trending is a little better with price crossing over the 10-day and 200-day moving average.
NASDAQ no change.
Russell 2000 no change.
China FXI price crossed over its 10-day moving average.
EFA price crossed over its 10-day moving average.
EEM price crossed over its 10-day moving average.
Dow Jones no change.
SPX Sectors Trending Heat Map
As mentioned above, Technology XLK and Communications XLC are the ones performing and leading the markets. Every other sector is doing poorly. That also explains the good relative performance of the NASDAQ and S&P 500 against the performance of Russell 2000 and Dow Jones.
My bias is to continue playing the market to the downside as I think ultimately the weakness in other sectors will weigh in on the Technology sector. So, I continue to be positioned short the stock markets and long the precious metals for now.