The risk profile changed in the market over the last two weeks. Tech ETFs led the market into the July highs, but we are seeing leadership emerge in some defensive areas the last two weeks. Namely, the MLP, Utilities and

As noted in reports last week, conditions are ripe for a correction in the stock market and tech-related ETFs are seriously extended. We cannot predict the length, duration or path for a correction, but we can identify periods when the

Volatility is on the rise the last three months with huge moves in AI related stocks, metals and crypto. Volatility is great when you are on the right side, but keep in mind that volatility goes both ways. Steep rises

Concerns are brewing as the VIX compresses, seasonal patterns turn and a sentiment indicator gets close to triggering bearish. At the very least, these indicators argue for extra vigilance because conditions are ripe for a correction or pullback. First, the

In addition to the tech ETFs, I am seeing leadership in a handful of non-tech ETFs. These include Blockchain, Telecom, Banking, Defense and Infrastructure. The MLP ETF is not a leader because the price-relative is declining, but it sports a

Tech-related ETFs are leading the market with massive moves the last three months. They are in strong uptrends, but getting overextended and ripe for a corrective period. For example, the ARK Fintech Innovation ETF (ARKF) and ARK Innovation ETF (ARKK)

SPY and QQQ are in leading uptrends with fresh new highs in late July. The first chart shows SPY with the big trend-reversing breakout on May 12th. This is when it broke the late March high, negated the Double Top

Stocks started their bull run with a Zweig Breadth Thrust on April 24th and SPY triggered a 5/200 one percent cross on May 15th. Long-term breadth indicators were lagging in May, but started catching up in June with the Nasdaq

The Fed will make its policy statement on Wednesday afternoon and this could cause some volatility in inter-market related assets. These include stocks, bonds, gold, the Dollar and Bitcoin. Yes, Bitcoin is a new addition to the intermarket arena. Today’s

Today’s report will take a step back and analyze the historic surge off the April low. History suggests that this powerful move is long-term bullish. We will then look at the V reversal off the March 2020 low and see

ETFs related to tech and industrials are leading the equity side of the market, but there are still plenty of alternative ETFs leading. Alternative ETFs are those related to bonds, commodities and crypto (non equity). Even though the Gold Miners,

Breadth continues to improve as the weight of the evidence turned bullish for the S&P 500. Nasdaq 100 and S&P 500 stocks continue to lead, but S&P 1500 stocks are lagging because of small and mid caps. Nevertheless, IJH and

S&P 500 breadth improved and turned majority bullish this week. This means the evidence for the S&P 500 and Nasdaq 100 is majority bullish. The evidence for the S&P 1500, which includes mid and small caps, remains majority bearish. However,

This report will focus on seasonal patterns and sentiment, but with a caveat. Seasonal patterns and sentiment are not the best market timing tools because they can reach extremes and remain at extremes. This is why we need to combine

Large-cap and large-cap techs continue to lead the market with small-caps and mid-caps lagging. SPY and QQQ hit new highs on Monday, but 279 stocks within the S&P 500 are more than 10% below their 52-week highs. 137 stocks are

Even though some equity groups are performing well year-to-date, commodity and crypto related ETFs feature prominently on the leaderboard. The pink shading on the image below highlights these leaders. The top five ETFs are related to platinum, gold, silver, uranium

The stock market advance broadened over the past week as more stocks crossed above their 200-day SMAs. Mid-caps caught a bid with IJH breaking its 200-day SMA. Small-caps also surged with IJR challenging its 200-day. We are also seeing flag/pennant

The majority of indicators remain bearish, but breadth continues to improve. First, the S&P 500 EW ETF joined SPY and QQQ with a close above the upper Bollinger Band (125,1) this week. Second, the percentage of S&P 500 stocks above