Market Watch For May 3-7, 2021 – Chop and Churn

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The month of April ended with a whimper amid a very choppy tape and some fresh all-time highs thrown in the mix.

After 7 consecutive months of higher highs, the grinding nature of the indices suggests we are now at somewhat of a stalemate or at least a point of consolidation where it makes putting fresh money to work a tricky proposition.

With the new trading month, there are now some real downside risks if we see last month’s lows on the indices tested.

Last week I called out your attention to the potential weekly reversal in bonds and gold. This week keep a close eye on the yields of US 10 Year to see if it begins to edge higher.

Here are some of the ideas in this week’s video:

  • What a major reversal in VXX looks like and what that could signal
  • The developing negative divergence between the SPY and S1FI
  • The downside risk for the indices and precarious position of the DIA and IWM
  • The weekly reversal in TLT and Gold and how we need to pay attention to the yields on the US 10 Year
  • When the going gets tough – the tough get lazy. Stocks vs Cryptos.
  • Examining the bullish reversal price action in BTCUSD and not needing to catch the exact bottom

 

Market Watch For May 3-7, 2021 – Chop and Churn

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