tadamichi
Last week brought a tactical bounce in the broader stock market, but more time will be needed for a durable low to form, according to BTIG.
“We got the bounce with SPX (SP500) (NYSEARCA:SPY) (IVV) (VOO) rallying ~3% off last week’s lows,” technical strategist Jonathan Krinsky said.
But “it now comes into a difficult level in the 5120-5130 range,” Krinsky said. “We suspect it fails there and turns lower, but should it close above that bulls would have to be respected.”
“Bigger picture, weekly MACD has flipped to a sell signal for the first time since Sep. ’23. Semis (SMH) and Software (IGV) are into overhead resistance, while Oil Service (OIH) is coming off support and looks attractive here,” he added.
“Transports (DJT:IND) continue to show relative weakness, largely due to the truckers breaking down. Finally, there is plenty going on in the macro front with the Dollar (DXY) bull flagging, the weakest Yen (FXY) since 1990, copper (HG1:COM) hitting its highest level since 2022, and China (SHCOMP) (HSI) turning the corner after a long bear market.”
