At the same time, stocks getting ever more extended relative to the HYG:SHY ratio, are consistent with the TINA (there is no alternative) shift. While greed is at extreme readings, there are still plenty of bears that haven’t capitulated yet.
S&P 500 Market Breadth and Sectoral View
The advance-decline line finally scored a noticeably higher reading, indicating that it’s just a little bit less about the tech (or FAANG, have your pick) carrying the torch. Advance-decline volume has risen too, and the bullish percent index remains solidly in a bull market territory.
Technology (XLK ETF) keeps powering higher like there’s no tomorrow, and the price action is of a healthy uptrend. Well, healthy – steady with hardly a correction. No sign of a top, definitely not in this leading sector.
Healthcare (XLV ETF) is on the rise too, as its prices are leaving the prolonged correction. The outlook is naturally bullish.
Financials (XLF ETF) typify cyclicals’ performance – and that’s still one of underperformance. With tech this prominently in the limelight, it’s hard to see more than a few bursts of rotation into value plays as tech keeps firmly in the pool position.
Summing up, the S&P 500 keeps extending gains, and so does the tech sector. Volatility has made a move to the downside on Friday, pointing to little changes in the market character – it’s still a bull market run, to put it precisely. The credit markets reflect the risk-on move, and both the top in stocks, and a meaningful correction, appear to be rather far off.
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All essays, research and information found above represent analyses and opinions of Monica Kingsley and Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Monica Kingsley and her associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Ms. Kingsley is not a Registered Securities Advisor. By reading Monica Kingsley’s reports you fully agree that she will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Monica Kingsley, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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