Last week’s call worked out partially. We saw the expected weakness early in the week followed by two up-days. SPY finished the week with -0.64%.

For the coming week we’ve got a rather bullish setup. I do expect a positive week.






Price Action

[bullish]

  • Direction: long term up, intermediate-term slightly positive
  • Historical ranked volatility: long-term above 0.25 and bellow 0.50
  • Trend-health: long-term trending environment (TSI >1.65) and intermediate trend conditions are above 25 and bellow 50.
  • Channel: intermediate channel position within lower range.
  • OB/OS: RSI(5)>25 and 25 and
Overall price action is providing a slightly bullish environment (B-J).
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Seasonality

[bullish]

Seasonality is bullish for April(K) and week 16.

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Correlation

[bullish]

Correlation (M) among S&P500 members is increasing (>0.25 and 75)

Read more about my correlation related research here.

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Breadth

[bullish]

Market Breadth (N) has weakened, but still up-trending.

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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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