- 6 Major Indices
- 9 Major Sectors
- 30-Year Bonds
- U.S. $
- Emerging Markets ETF (EEM) and BRIC Indices & ETF (BKF)
- Germany, France, and the PIIGS Indices
6 Major Indices
The Indices remain (technically) in overbought territory on their Weekly and Monthly timeframes, which may be viewed as overvalued to some and bullish to others.
9 Major Sectors
As shown on the Weekly charts and the percentage gained/lost graph below of the Major Sectors, the largest gains were made in Health Care, followed by Utilities, Consumer Staples, Cyclicals, Energy, Industrials, Technology, Financials, and Materials. There was a bigger appetite for the 'Defensive' Sectors as the S&P 500 approached and finally closed above its all-time closing high.
The Sectors also remain (technically) in overbought territory on their Weekly and Monthly timeframes, which may be viewed as overvalued to some and bullish to others.
The 5-Year Weekly chart below of 30-Year Bonds shows that price continued its bounce from the prior two weeks and is sitting just below major resistance. A break and hold above resistance may coincide with profit-taking in the Major Indices/Sectors...something I'll be watching for in the coming week(s). I'd need to see major support below broken and held on increasing volumes before I'd suggest that perhaps big money is finally flowing out of Bonds to be deployed into equities, and/or commodities, currencies, other instruments. However, there may be some drifting out within this current range (in between support and resistance) that is not so apparent because of Fed intervention.
As shown on the 5-Year Weekly chart below of the U.S. $, price closed (once again) above an important convergence of two 60% Golden Fibonacci ratio levels. A break and hold above its recent highs may also coincide with some profit-taking in the equity markets, or serve as a hedge on any further equity rally.
Emerging Markets ETF (EEM) & BRIC Indices & ETF (BKF)
As shown on the 5-Year Weekly chart below of EEM, price is retesting major resistance. A break and hold above may positively influence the 'riskier' Sectors, while a break and hold below major support [the confluence zone of the 50% Fibonacci level, 50 and 200 smas (note the bearish 'Death Cross' formation on this timeframe as price is still subject to its bearish influences), Volume Profile POC, and lower Bollinger Band] could produce a drag on any further equity rally...an important ETF to watch going forward.