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Stocks got a big bounce the last two days, but this is still considered an oversold bounce within a bigger downtrend. SPY, QQQ and IWM fell sharply the last two weeks of September and were ripe for such a bounce. Overall, the

This page shows the current Market Regime using the Composite Breadth Model and the situation in the credit markets with yield spreads. These indicators are very different, but they go hand in hand when assessing the state of the financial markets.

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The Dollar finally took a breather from its rapid ascent with a four day pullback and we also saw the 10-yr Treasury Yield fall from around 4% to 3.6%. The Dollar represents the risk-off trade so the pullback facilitated a bounce in

The Composite Breadth Model remains bearish with all five inputs negative and yield spreads are on the rise as the CCC spread widened to a new high. Taken together, this means the Market Regime is bearish for stocks and risk is above average. Bonds and gold do not offer alternatives

The bears remain in control of the stock market and they are expanding their territory with breakdowns in energy, a clean energy and biotech. Stock-based ETFs are still part of the market and this became abundantly clear as all stock based ETFs in the ETF Master List fell over the last

The Fed has come and gone, and the ugliness in the markets remains. Stocks fell sharply on Wednesday as SPY lost 1.79%. Bonds bounced with a sequence of sell-the-rumor (rate hike) and buy-the-news (actual hike). Sell short on the prospect of rate hikes and cover when the big

The Composite Breadth Model remains bearish with all five inputs negative and the yields spreads are on the rise, especially junk spreads. Taken together, this means the Market Regime is bearish for stocks

Volatility remains above average in the markets and now we have a Fed meeting to contend with. There is only one thing to do when the Fed meets: turn off your news feed and wait a few days for the dust to settle. Knee jerk reactions are

This is one tough market, and I am not just talking about stocks. Non-stock alternatives usually emerge during bear markets, but we are seeing weakness in oil, copper, gold and “safe-haven” Treasury

The weight of the evidence remains bearish for stocks and volatility is above average. Throw in elevated yield spreads and a hawkish Fed, and you have a bearish Market Regime for stocks. Bear markets are

Stocks surged the last four days with another big move. It seems that there is no such thing as “average” anymore as we are seeing big moves both up and down. The chart below shows SPY with the 5% zigzag in red. This red line only

After becoming very oversold on Tuesday, stocks bounced on Wednesday with the major index ETFs gaining around 2%. Today’s report will put these bounces into context. We will show the difference between bullish setups in harmony with the bigger force and

Stock market volatility remains high as strong bouts of buying pressure are answered with strong bouts of selling pressure. Strong buying pressure and broadening upside participation turned the thrust models bullish in August, but these signals

The pickings within the stock market are slim and the pickings outside the stock market are also slim. There are far more downtrends out there than uptrends and this limits the choices for trend-following and those looking for pullbacks within uptrends. SPY and QQQ are

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 moved sharply lower the last two weeks with ten of the eleven sector SPDRs declining and almost all industry group ETFs falling. Energy-related ETFs and the Uranium ETF were exceptions. The long-term trend for

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