The 4 ratio indicators monitor key intermarket relationships which determine threat on/off market circumstances.
These 4 indicators can be utilized collectively to substantiate or determine the power of the core threat on/off indicator, which is the v. Utilities.
As clearly illustrated, all of the ratios are flashing 100% risk-on. Is it time to place your money to work?
The underside of the latest buying and selling vary seems to be holding at this level.
And, what led to extra confidence in our latest picks (), International X Lithium & Battery Tech ETF (NYSE:), GME, 3 most up-to-date examples) was the ratio between SPDR® S&P 500 (NYSE:) and Lengthy Bonds (iShares 20+ 12 months Treasury Bond ETF (NASDAQ:)).
I’ve been vocal within the media about junk bonds () versus lengthy bonds (TLT). When a excessive yield outperforms lengthy bonds, making a case for recession is tough.
Moreover, we have now talked about that gave the impression to be in for a relaxation.
As you’ll be able to see, SPY and outperform gold, factor for the inventory market.
These ratios gave us a consolation stage as bulls need SPY within the lead. Nevertheless, allow us to not lose sight of the ratios, for first, they may flip.
Secondly, the buying and selling vary continues to be very a lot so a buying and selling vary.
Lastly, the small caps () might have gotten a cross for now however nonetheless must show much more.
We proceed to imagine that the financial system might not contract additional, which continues to be fairly completely different than predicting the financial system can develop.
Stagflation continues to be a factor.
ETF Abstract
S&P 500 (SPY) 23-month MA 420 Help 410
Russell 2000 (IWM) 170 assist – 180 resistance
Dow (DIA) 336, the 23-month MA
Nasdaq (QQQ) 328 cleared or the 23-mont MA-now its all about staying above
Regional banks (KRE) 42 now pivotal resistance-37 assist
Semiconductors (SMH) 23-month MA at 124 now extra within the rearview mirror
Transportation (IYT) 202-240 greatest vary to look at
Biotechnology (IBB) 121-135 vary to look at from month-to-month charts
Retail (XRT) 59.74 held, so now we watch the 50-DMA at 62.00
