HYG is hitting downward trend line resistance in a wedge pattern. It might be a good time to short. If the economy starts to break out inflation expectations should rise and all rates including high yield should rise. If the economy begins to tank, High yield bonds will be suspect and yields for junk bonds should rise as the likelihood of bankruptcy increases. If...
RUT is under-forming SPY. This is a bearish indicator. In 2007 RUT peaked months before SPY and QQQ. RUT peaked in 2018. RUT still in a downtrend. SPY has broken its downtrend. There will be convergence eventually. Does SPY/SPX drop or does RUT/IWM rise?
Very bearish long term technicals in the SPX. There is a topping pattern forming. On Balance Volume OBV shows a clear distribution pattern. As profit taking smart money is offloading their stock greedy irrationally exuberant investors. Moreover there is a bearish divergence in RSI. If OBV breaks down the the downtrend should begin
Looks like we have one more down leg on an Elliot correction wave. We have not broken the downtrend yet. I expect another retest of the latest lows or a test of the 200 day moving average
EWZ is a derivative of the Brazilian stock market ( IBOV ) and the USD/BRL relationship. There is a clear head and shoulders pattern developing in the Brazilian Real. The drop in the Real should provide a tailwind for Brazilian stocks. On top of that, the IBOV just broke out above 90,000. I see continued upside in EWZ and BRZU as a result. This can be seen in the...