In a break with behavior from the last two years, US Equities were unable to build on a Thursday reversal attempt, registering a sixth consecutive week of declines, the longest downhill run since the dot.com bust, leaving the S&P 500 (SPY) down -2.2% and below prior 1,300 support. Only select non-equities were able to finish in the green, including Liquid Fuels (DBE), Treasuries (TLT) and the US Dollar (UUP).
Intermediate RSIs are now registering broad oversold conditions for equities (see below), and yet shorter-term readings suggest we may have further to go to the downside. That said, I would expect the ten-month moving average just 2% below to act as strong initial support for the S&P 500. We have a busy economic calender next week….
Source: ETF Rewind Pro subscription service; prior weekly posts.
