Breadth is improving while stock markets print new highs. Despite the Monday surge in S&P500 futures, price action faded setting up a potential buy the dip open this morning.
AAII Bull-Bear Ratio
Pivots in this ratio have marked reversals and bullish trend continuation. This time is no different than 2009, 2010, 2012, and 2016 despite Covid-19 and the constant political turmoil highlighted by the financial media.
Momentum is bullish, as illustrated in the lower panel. Bulls are joining in.
Breadth Improving – New Highs
New highs are printing daily as the upper histogram confirms. NYAD in the middle panel echos this data as advancers beat decliners. Look for new highs in the NYAD, as the NYSE nears the February 2020 highs.
Unless something changes dramatically, we are bullish.
Futures are lower (13.50 pts).
The 10yr. yield is rising. If this continues, it will confirm the bullish equities thesis in breadth. Look for higher yields to continue into year-end.
- Top Absolute Gamma Strikes: Read as support/resistance
- SPX: [3600, 3500, 3450, 3400]
- SPY: [360, 355, 350, 340]
- QQQ: [290, 285, 280, 275]
- NDX:[12000, 11800, 11000, 10900]
- courtesy – spotgamma.com
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Happy Trading,
Vinny
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