Weekly Market Perspectives – 08/10-08/14

 

Weekly Commentary –
 

The words “summer trading” pretty much sum up this week’s price action.

This week we saw the SPY bounce off the 50 period MA for the second time as well as off the uptrend inside of the symmetrical triangle we highlighted for the past 2 weeks.

The SPY is squeezing inside of symmetrical triangle on the weekly chart which portends to a decent sized move one way or the other once price action breaks outside the triangle.

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.

For those interested in options – with volatility still tracking on the low side a long straddle or strangle could be an interesting trade.

Here’s an updated VIX (the Volatility index) chart below.
VIX continues to be holding at these depressed levels.

 

 

Here’s an update on our sector rotation watch.

Only negative sector this week was Energy.

Notable –

  • Uptrend
    • Con. Staples, Con. Discretionary, Healthcare,  Financials and Technology all holding on to their uptrends
    • Utilities – showed strength and continued it’s trending ways this week with a series of higher highs
  • Still in a downtrend – Builders, Industrials, and Energy
    • Builders, Industrials, and Energy remain in a downtrend and spent the week consolidating

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 – 08/10-08/14

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