There was a lot of selling pressure in September as downside participation hit an extreme. Selling pressure was concentrated in the Equal-weight S&P 500 (RSP), Small-caps (IJR) and Mid-caps (IJH). These oversold extremes could give way to an about face and bull stampede. It hasn’t happen yet, but this possibility should be on our radar as we enter the fourth quarter. $SPY $NYA $SPXA50R $SPXADP

Healthcare related ETFs are leading the market since June. QQQ and XLK peaked in June, fell into July and recovered with gains into September. Both are still just below their June highs. In the meantime, money moved into healthcare-related ETFs with the Healthcare SPDR and Biotech ETFs gaining over 15% since June. Healthcare is the strongest sector since June and the second strongest sector since May. It is also the fourth biggest sector in the S&P 500 (9.36%). $XLV $IBB $XBI $SBIO $IHI $IHF

The broader market was hit rather hard in September as macro headwinds swirled. These headwinds, however, did not affect QQQ, the tech sector and the healthcare sector. Strength in these two sectors is propping up SPY, which is down a fraction month-to-date (-.19%). It is hard to have a bear market when SPY is above its 200-day and tech is leading. Today’s report will focus on the headwinds, key levels for the leaders and an alternative interpretation of the SMH chart. $SPY $QQQ $XLK $MAGS $AIQ $ARTY $SMH $SOXX $DRAM

There is some serious bifurcation in the stock market right now, but this has yet to affect SPY, which is heavily weighted towards the Technology sector. Tech and AI are strong since August, but Industrials, Retail and Housing are weak. This is a sort of rolling rotation where money moves out of one part and into another. Today’s report will focus on the leaders: tech, AI, MAGS, cybersecurity, software and cloud. $SPY $QQQ $XLK $XLC $MAGS $AIQ $ARTY $SMH $DRAM $SKYY $CIBR $IGV

Commodities, stocks and the Dollar are higher since March, while gold and bonds are lower. I picked March because this is when the war with Iran broke out and oil surged. The 12-month Oil Fund (USL) is up some 47% since March. Other commodity groups are also higher (base metals, copper and agriculture). $GLD $GDX $SLV $UST2Y $SPY $IWM $RSP $CPER $DBB $USL $SRUUF $BLOK

Today’s report focuses on two stocks from the Healthcare Providers ETF (IHF) and two from the Aerospace & Defense ETF (ITA). IHF is leading the market as it consolidates near its highs. HCA Corp and Universal Health Services show signs of bottoming over the last few months. Aerospace & Defense was leading the market in August, but took a hard hit over the last four weeks. Lockheed Martin and RTX Corp pulled back within the group and became oversold within their uptrends. $LMT $RTX $HCA $UHS

The weight of the evidence remains bullish for stocks, but oil, interest rates and inflation are taking their toll on parts of the market. Small-caps are bearing the brunt of recent selling pressure with large-caps and large-cap techs holding up better since August. Semis are at a moment of truth, while the AI/Tech ETFs are holding their breakouts. Elsewhere, I am seeing bullish setups in Regional Banks, Telecom, Healthcare Providers and Medical Devices. $SPY $QQQ $XLK $IWM $AIQ $ARTY $SMH $SOXX $DRAM $IHI $IHF $KRE

The intermarket picture is negative for the average stock (equal-weights, small-caps and mid-caps). Rates are rising and this rise is accelerating. Rising oil prices are stoking inflation. Value and energy are leading within the stock market, while consumer discretionary and industrials move lower. Tech and semis are holding up well since August, and keeping SPY/QQQ afloat. Today’s report also covers gold, copper, uranium and blockchain. $IEF $UST2Y, $UST10Y, $XLY $GLD $CPER $SRUUF $BLOK