Weekly Market Perspectives – 08/03-08/07

 

Weekly Commentary –
 

This week we saw a consolidation week as the market sold off slightly to test the uptrend inside of the symmetrical triangle and closed inside of last week’s price action forming an inside week.

The market is contracting here in what will likely be a setup for some range expansion in the near future.

Last week we outlined 2 possible scenarios which are still in effect:

  1. There’s a higher probability that we break to the upside to hit all time highs.
  2. Or we break to the downside and with 201.92 being the first downside target.
 

Here’s an updated VIX (the Volatility index) chart below.
Even with the selling this week, the VIX is still at depressed levels perhaps indicating that the current retracement is just a healthy consolidation in a macro uptrend.

 

 

Here’s an update on our sector rotation watch.

This week was nearly a mirror opposite of last week with all the sectors ending negative except Utilities.

Notably –

  • Strong uptrend
    • Con. Staples, Con. Discretionary, Healthcare,  Financials and Technology – all pulling back but still in an uptrend
      • Healthcare on verge of breaking uptrend
  • Change of trend
    • Utilities – broke out of a down trend last week – saw more strength this week
  • Still in a downtrend – Builders, Industrials, and Energy
    • Selling resumed in Builders, Energy and Industrials
      • Energy continues to be very weak; where is the bottom?

The major sectors are posted here on Finviz for your viewing pleasure –

http://finviz.com/screener.ashx?v=211&ft=4&t=XLF,XLY,XLK,XLB,XLI,XLE,XLU,XLV,XLP

Weekly Market Perspectives – 08/03-08/07

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