The S&P 500 hit a new all time high this week and large-cap techs perked up with QQQ surging. Small-caps are lagging, but IWM is not really bearish. The Composite Breadth Model remains firmly bullish with the short-term indicators for the S&P 500 outpacing those in the S&P 1500. Yield spreads narrowed further this week, while the Fed balance sheet contracted a little. Turning to ETFs, there were a number of bearish StochClose signals recently, but these could be downside overshoots after upside excess in February. There were new highs in ETFs related to industrials, materials, steel, housing and REITs. The Semiconductor ETF held up the best of the tech-related ETFs and is close to a new high. We are seeing a breakout in the eSports ETF and a bullish consolidation in the Auto ETF.
Timing Models – SPY Leads, QQQ Perks Up, SPX Leads Composite Breadth Model and Yield Spreads Narrow (Premium)
The S&P 500 SPDR hit a new high to affirm the bull market and three sectors confirmed this new high. The Consumer Staples SPDR, Materials SPDR and Industrials SPDR recorded new highs at some point this week. Even though the other big sectors did not hit new highs this week, they are in uptrends and within three percent of new highs. These include the Technology SPDR