TIME TO USE YOUR DISCRETION AS SECTOR HELPS PROP UP EQUITIES? | GoNoGo Charts

Good morning and welcome to this week’s Flight Path. It was one other sturdy week for U.S. equities as we noticed S&P hit new highs on every week of sturdy blue “Go” bars. Treasury bond costs had an excellent weeks as effectively with a string of blue “Go” bars and the U.S. commodity index was in a position to stay in a “Go” development though we did see some weak spot with aqua bars because the week got here to an in depth. The greenback was the one asset this week that fell out of its “Go” development. We noticed some uncertainty as worth dropped and GoNoGo Development painted a few amber “Go Fish” bars.

$SPY Paints Countertrend Correction Icon at New Highs

Fairness costs continued greater this week and GoNoGo Development painted uninterrupted sturdy blue “Go” bars. Late within the week we noticed a Go Countertrend Correction Icon (purple arrow) on the excessive indicating that worth might battle to go greater within the brief time period. Once we have a look at the oscillator panel we are able to see that it fell out of overbought ranges however has rapidly returned exhibiting sustained market enthusiasm. We’ll watch to see if momentum wanes this week and can search for worth to consolidate at these new greater ranges.

Sturdy “Go” development. That’s the studying from the weekly chart. One other greater weekly shut on a powerful blue “Go” bar is what we’re seeing right here. If we have a look at the oscillator panel we see that we’re staying in overbought territory and so we don’t see momentum falling off sufficient to set off a countertrend correction icon (purple arrow) on the value chart.

Treasury Charges in Sturdy “NoGo” Development

This week confirmed the “NoGo” image that had emerged.  GoNoGo Development painted a complete week of sturdy purple “NoGo” bars and worth made a brand new decrease low. Once we look to the oscillator panel we are able to see that GoNoGo Oscillator fell again by way of the zero line after a couple of bars in a GoNoGo Squeeze and is now in destructive territory at a worth of -2. This tells us that momentum is resurgent within the path of the “NoGo” development and so we see a NoGo Development Continuation Icon (purple circle) on the value chart.

Greenback Shows Uncertainty

Final week GoNoGo Development knowledgeable us that the “Go” development was weak after it fell away from its most up-to-date excessive and painted plenty of weaker aqua “Go” bars. This week we noticed worth fall additional, gapping decrease mid week. This led to GoNoGo Development portray a few amber “Go Fish” bars telling us that not sufficient of the GoNoGo standards are being met to find out a development in both path. If we glance to the GoNoGo Oscillator for clues, we are able to see that it has failed at zero, and is dropping quick towards oversold territory. There’s destructive momentum right here.

The weekly chart nonetheless tells us that we’re hanging on to the long run “Go” development. After a damaging week, we’re buying and selling near ranges that might effectively counsel assist. As GoNoGo Oscillator falls towards the zero line, we are going to watch to see if it finds assist at that stage. If it does, we are going to count on the “Go” development to proceed.