Click to Enlarge – Read more about [Weekly 360? view] here.
Column
- A: average weekly return (benchmark)
- B: intermediate overbought / oversold conditions (using DVI)
- C: same criteria as B incl. market trend strength filter (TSI)
- D: same criteria as B incl. volatility filter
- E: moving averages: close above MA50 and MA200, MA50 bellow MA200
- F: overbought market DVI > 0.5, market opens the week with a 1%+ UP-GAP
- G: overbought market DVI > 0.5, close at intermediate term channel low
- H: January
- I: First week of the year
- J: bond market signaling low risk environment – looking at what type of bonds do well
- K: J and H combined
- L: J and B combined
- M: ranking sectors by it’s past performance. XLP and XLU are the strongest.
- N: Rising market breath. Looking at SP500 stocks
The market remains overbought on intermediate-term levels, that can be seen as slightly bullish. Though the bond market continues to signal risk off mode. Furthermore the market is expected to show a strong UP-GAP. UP-GAPs within a overbought environment aren’t the best time to buy. I remain defensive as I want to see a slight pull-back before increasing my long exposure.
Please let me know what you think about the outlook. Add your comments or opinion in the comment section bellow.
# Frank
