It was a bearish week for US equity indexes, with net weekly declines ranging from -2.8% (R2K), -2.6% (Trans), -2.1% (Dow), -2.0% (NYSE comp'), -1.7% (SPX), to -1.6% (Nasdaq comp').
Lets take our regular look at six of the main US indexes (monthly candle charts)
sp'500
Nasdaq comp'
Dow
NYSE comp'
R2K
Trans
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Summary
All six US equity indexes were significantly net lower for the week.
The R2K lead the way lower, with the Nasdaq comp' most resilient.
The Nasdaq comp' broke a new historic high.
More broadly, all six US equity indexes are still holding above their respective monthly 10MA, and I thus see the m/t trend as bullish.
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Looking ahead
The schedule is light. Highlight of the week will be Tuesday's CPI print.
Earnings:
M - ORCL, VOLT
T - FCEL
W - JKS
T -
F -
-
Econ-data/events
M - US T-budget
T - CPI
W - Import/export prices, Empire state, indust' prod', EIA Pet'
T - Weekly jobs, retail sales, Phil' fed, busi' invent'
F - Consumer sent'. *QUAD-OPEX*
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Final note
US equities certainly didn't have the best of weeks, but the m/t trend remains very comfortably bullish. I'd note the 50dma for the SPX - currently 4424, which has broadly held as support since Nov'2020. I have to expect that to continue to hold into Q3 earnings.
There remain two key concerns. First, a severe geo-political 'event'. I'm sure you can think of a few. The second aspect is health, and that is all I can note about that on these Google based pages.
If you read around the blogosphere this weekend, you'll see continued crash calling from the usual suspects. They've been calling for a crash long before sp'4000. Eventually they'll be right, and will have the guile to still say 'see... I told you!'.
Sure we're due a correction of 5-10%, or even a larger (if brief) bear market drop >20%, but that might easily not occur until next year. I have zero concerns about the Fed and the looming QE taper. Further, eventual rate hikes are inherently bullish, not least for the banks.
So whilst some are expecting a screen full of red boxes next week, I would look to AAPL, the energy sector, commodities (especially WTIC >psy' $70), and the cyclical/epicenter stocks for renewed upside.
For more charts, and whatever else I want to post about - outside the
control of the mainstream media hacks, you know
where to find me in... the twilight zone.
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Have a good weekend
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*the next post on this page will likely appear 5pm EST on Monday.
