Last week’s call worked out well: higher close with a mild pullback.

For next week we’ve got a mildly bullish signal. In case of a pull-back no more than 2%.






Price Action

[bullish]

  • Direction: long term up, intermediate-term up
  • Historical ranked volatility: 0.25 – 0.50, bellow mid-point
  • Trend-health: long-term trending environment (TSI >1.65) and intermediate trend conditions are high, but lower than 5 days ago.
  • Channel: intermediate channel position above mid-point.
  • OB/OS: RSI(5)>50 and 50 and
Overall price action is providing a bullish environment (B-J).

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Seasonality

[bullish]

Seasonality is bullish for April(K), especially during first week of April.

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Correlation

[bearish]

Correlation (M) among S&P500 members is higher (>0.25) . Short-term we see a decrease in correlation (RSI2

Read more about my correlation related research here.

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Breadth

[bullish]

Market Breadth (N) for top performers is at high absolute levels and decreased over the week.

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Sectors

[bearish]

Sector setup (O) is bearish. The sector leaders are XLI (Industrials) and XLF (Financials).

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Bonds

[positive]

RISK ON for the bond market (P). Generally this is positive for the stock market, especially with a combined setup (BONDS and DIRECTION).

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