Today’s video starts with the S&P 500 and breaks down the reversal over the last two weeks. We can see the index becoming overextended, accelerating higher and then suddenly reversing with an outsized decline. Such reversals occurred in the past and we will show what it means going forward. Elsewhere, the medium-term indicators turned mixed and the Nasdaq 100 weakened. The breadth models are still bullish overall, but we are seeing less strength during the advance from July to August. Turning to the ETFs, the precious metals ETFs are still with bullish consolidations and TLT is trying to hold its breakout. SPY and others are short-term oversold and could bounce, but the longer-term correction targets remain. Banks are breaking down even as yield spreads remain narrow and the Fed balance sheet remains fat.
As the links above show, there are a few new chartbooks in town. I added a chartbook for the Breadth Models and Indicators, as well as for the Broad Market Charts and Indicators. Also note that the ETF ChartBook is organized by grouping and ranking the ETFs according to their chart patterns and trend strength. A list of the groups is included at the beginning of the ChartBook.