Week 21 Trending Tuesday

We are down today after a flat to down day yesterday. Overall, the 2 days have been weak with the debt ceiling not yet resolved. Let us see what changes we have in the trending from last week.

Major Markets Trending

We see some weakening in the S&P 500 and more severe weakening in the Dow Jones. The NASDAQ weakened today but not enough to change any of its trending. The Russell 2000 has been the strongest of the lost the last several trading days and looks like it is trying to catch-up with the big tech stocks.

SPX Sectors Trending

And then there were the last 3 standing. The picture above signifies the extreme level of divergence in the markets right now. The XLY, XLK and XLC continue to hold up the S&P 500 while all the other sectors keep getting weaker. There is no right or wrong here. The market is always right, and it will continue to do what it wants to do. The question we have to ask is whether these 3 sectors can keep the S&P 500 going higher. That seems unlikely.

Thematic ETFs Trending

Unfortunately for me the strength of the dollar continues which in turn keeps precious metals weak. Today was a positive day for GLD, so I will wait and see if that strength continues. The homebuilders XHB and ITB have begun to weaken somewhat. The trend is still intact but needs to be watched going forward. The regional banks KRE have caught a bid and have been moving higher the last few trading days. KWEB remains weak.

Tomorrow morning before markets open, I will do a rundown through chart observations of the above to identify what are the tradable instruments.