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,