SPY is testament to the volatile world we live in right now. The ETF surged some 14% in 22 days (.64% per day) from July 22nd until August 16th and then fell 8% the last 11 days (.73% per day). The fall, so far, is sharper than the rise. The reversal occurred with

Stocks were hit hard again over the last two days and are now short-term oversold. While short-term oversold conditions could give way to an oversold bounce, we saw some important failures near falling 200-day SMAs over the last two weeks. These failures are long-term negative so I would not read too much into an oversold bounce

The weight of the evidence remains bearish for stocks, but SPY became short-term oversold after a sharp decline the last five days. Even though this could give way to a bounce, the bears reasserted themselves and risk looks above average for stocks. Today’s report will

Stocks fell sharply the last two days and these declines were enough to reverse the short-term uptrends in many stock-based ETFs. In particular, the short-term uptrends reversed for SPY and QQQ. This is a big deal because the Composite Breadth Model was

The short-term uptrends are dominating the landscape, or at least this seems to be the case. SPY is below its falling 200-day SMA, but is up some 16% from its mid June low. It is a strong move that has yet to be reversed. In fact, there are dozens of ETFs with similar characteristics:

Market and ETF Report – SPY Nears 200-day, IWM Triggers, Energy ETFs Hold Breakouts, Agriculture ETF Breaks Out (Premium)

Stocks surged on reports that inflation was less than expected. Bonds did not. This is interesting because bonds are supposed to be more vulnerable to inflationary pressures. The news, however, is just the reported news we can never be sure of the true reasons for the price moves.

We are seeing more bullish Trend Composite signals, but the weight of the evidence remains bearish for stocks. Of the 274 ETFs in the master list, there are 22 ETFs (13%) with positive Trend Composites (uptrends) and 152 (87%) with downtrends. The uptrend signals are

Today’s report starts with some short-term breadth indicators. One of the three triggered a bullish breadth thrust, but the other two have yet to show the upside participation needed for a thrust signal. They have yet to cross that line and are actually looking short-term

Despite a big advance in June, the Market Regime remains bearish and risk is above average for stock-based ETFs. In addition, the Trend Composite is negative for the vast majority of stock-based ETFs. A few ETFs related to clean energy, fossil fuels, consumer staples,

Today’s report will update Dow Theory analysis from last month, recall an old adage from Marty Zweig and show that only two assets are holding up. The Dollar remains very strong, which means the opposing

Stocks became oversold after a sharp decline in June and the bounced to varying degrees. Some of these bounces were quite sharp (ITB, IBB) and some ETFs simply consolidated (SPY, KRE). Almost all ETFs are in downtrends and this means the bounces are considered counter-trend

After becoming very oversold in mid June, the major index ETFs are in the midst of oversold bounces or consolidations over the last three weeks. Predicting the extend of a bounce is tricky, but the current bounce since mid

My screen for today’s price action is a sea of red right now. Stock futures are modestly lower, energy futures are lower, gold is slightly lower, industrial metals are sharply lower and agricultural commodities are sharply lower. The US Dollar Index is the only thing higher and it is trading at a new high

Today’s report to put trend and volatility together so we can identify the best conditions, the worst conditions and the questionable conditions. Most of us know that current conditions are the worst for stocks because we are in a bear market with high volatility. We will chart volatility to show when it is deemed high and

Stocks bounced the last five days, but these bounces are considered counter-trend moves within bigger downtrends. One of these counter-trend moves will result in a trend reversal, but this is not the case yet because the weight of the evidence remains bearish for stocks. The first indicator window below shows

As noted in Tuesday’s report and in Wednesday’s video, the majority of ETFs in the Master List (274) are in downtrends. There are a few groups holding up, but even energy and agriculture were hit with selling pressure here in June. Mr Market is dazed, confused

There are a lot of downtrends out there and not just stock-based ETFs. The vast majority of stock-based ETFs are in downtrends with Trend Composite values in negative territory. ETFs related to industrial metals, precious metals, bonds and non-Dollar currencies are also in downtrends

Today’s commentary will dive into Dow Theory and show some overlap with Elliott Wave. We will show the phase/wave counts for the last bear market and then make an attempt to label the current

It was a “sell everything” moment the last four days as stocks, bonds, commodities and non-Dollar currencies declined. The Dollar Bullish ETF (UUP) rose 2.82% the last four days and the Corn ETF (CORN) was up .46%. Those are the only two ETFs

Small-caps are outperforming large-caps over the last one to two weeks because large-caps stalled and small-caps continued higher. Even so, I am not following the siren song of small-cap relative strength and am more concerned with short-term relative weakness in

Today’s report will start with the Composite Breadth Model and some words on the Market Regime because this is the dominant force at work for stocks and stock-based ETFs. Some stock-based ETFs are featured in this report because they are either in uptrends on the price chart, have positive Trend Composites or held their January-March lows (did not break down).

Today’s report starts with bonds, the Dollar and gold. I am not, however, going to tie moves in one asset to movements in another. There are some relationships at work, but relations and correlations change and sometimes do not work out as expected. Instead, I will simply analyze

There was a big oversold bounce with some of the most beaten down ETFs leading the way. The ARK Innovation ETF (ARKK), Clean Energy ETF (PBW), Consumer Discretionary SPDR (XLY), Cloud Computing ETF (SKYY) and Home Construction ETF (ITB) were up over 10% in three days.

The market regime is bearish, but SPY and QQQ are still in oversold territory that could give way to a bounce. In addition, we are seeing short-term strength in some of the high-beta ETFs as Treasury yields fell over the last two weeks. Personally, I am not

The market regime remains bearish because the Composite Breadth Model is negative and yields spreads are showing stress in the credit markets. Note that the BBB spread exceeded its March high over the last few days. Short-term, stocks are still quite oversold after a big decline from mid April to early May. Oversold

Bearish outcomes are more likely in a bear market and this is playing out as even the defensive groups were hit with selling pressure on Wednesday. We are also seeing this play out in certain commodities, such as industrial metals. Industrial metals

Stocks became extremely oversold last week after a sharp five day decline that looked like a selling climax. This five day decline was already on top of a sharp decline from April 21st to 27th (-8.5%). All told, there was

Stocks remain under pressure and failed to bounce after becoming quite oversold after a three-day decline on Tuesday. This decline continued with many stocks and ETFs becoming even more

The ugly just got uglier. The Composite Breadth Model turned bearish on April 11th and the 5-day SMA for the S&P 500 crossed below the 200-day SMA that same day. At worst

Market volatility was also high and seemed to get even higher the last two weeks. Moreover, volatility and selling pressure are not just in the stock market. We saw selling pressure in almost all groups over the last five

The Composite Breadth Model remains bearish and we are in a bear market environment for stocks. Oil and agricultural commodities remain relatively strong, but industrial metals were hit pretty hard the last two weeks. Downside participation

The Market Regime is bearish and this means there is a headwind for stock-related ETFs. At the very least, we should be extremely selective and reduce exposure to stocks. Even though we will still have sharp oversold bounces,