All Price Based Indicators Are Pointing to Follow-Through Short-term Despite the Media Noise
We find it utterly amazing that all of our price-based indicators, not to mention sentiment and breadth, point to bullish activity, despite the constant media bombardment with negative news. What is it with these people anyway? We won’t get into a political discussion, but we do find it amazing that Risk-On indicators are lining up along with price, sentiment, and breadth.
SPX1500 Buy Signal – Bullish Indicator
The SPX1500 Composite is comprised of S&P500 big-cap stocks, S&P400 mid-cap stocks, and the S&P small-cap stocks. The number of new highs began outpacing new lows, as price action in the latter fades.
Bullish Indicators – Sentiment and Seasonality
Institutions appear to be buying beaten-down technology, financial, industrial and consumer discretionary stocks into the holiday shopping season. They appear to be easing out of defensive stocks; watch utilities and consumer staples.
The institutional sentiment indicator, as measured by institutional buying and selling, shows a bullish follow-through yesterday. This indicator is easily interpreted by watching TICK cumulative in the lower panel. Daily and 60-minute charts agree.
Seasonality usually kicks in the first week of December, motivated by consumer discretionary stocks. Many of these well-known names, Wal-mart, Target, TJ Max, Kohl’s, and Macys, among others. show signs of institutional buying. Just remember to check money flow and confirm for potential bullish follow-through.
Futures were lower this morning as fear of yet another “tariff” disappointment seems to captivate the financial media. S&P futures are rallying into the opening bell.
Join us during our LIVESTREAM broadcast this morning as we discuss these “bullish indicators” the financial media always seem to overlook. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
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