Week 19 Trending Tuesdays
With 2 days of the trading week done and in anticipation of the inflation read tomorrow morning, here is how the major markets are trending.
Major Markets Trending
We can see some deterioration in the S&P 500 and the Dow Jones Industrial Average trending with a bit of improvement in the NASDAQ trending. There is no change in the Russell 2000.
In general, though, the markets still look undecided and the trendlines are all mostly bunched up close together. It gives me the impression that something is going to drive the markets in one direction quite soon and we will come out of this funk.
My bet remains to the downside, and I am still short IWM (medium size), SPY (small) and QQQ (small).
SPX Sectors Trending
Based on the overall deterioration seen in the S&P 500, we do see the deterioration in the sectors as well. We can see that 8 of the 11 sectors are short-term trending bearish and also, 8 of the 11 sectors’ price has dipped below the 10-day moving average.
Note that there is a slight difference between the S&P 500 (GSPC) price trending and the SPY (S&P 500 ETF) price trending. That is why I mentioned that the trendlines are all bunched up and something has to give sometime soon.
SPX Top 24 Trending
Tech has been strong, and the strength is evident in the picture above. The changes are highlighted, and we can see that the trending mostly improved for tech and deteriorated for others.
And when I say tech, I really mean big tech. I am not hoping for that to change but at some point, one would think these frontrunners will get tired. Especially, if the others do not join them. There is only so long they can carry the weight of the entire market.