Wealth

The US markets closed higher on the week with the $SPX breaking out and closing at new all-time highs a smidgeon under 3400. Breadth indicators weakened considerably in the face of the new highs on the index as Apple soared to a $2 Trillion market cap.

My bullish optimism is now being tempered with the changes I am seeing in behind the glamour of the lofty index. The Schnell Strength Index is still in the 90’s but it weakened 3% intraday on Friday, an Options Expiration day with a new high for the market. 3% is no big deal, but the last 4 days of this week saw more decliners than
advancers on both exchanges as the market pushed higher. This week, we saw a drop below the trend line for the advance/decline line measured on many different markets. The Nasdaq Composite, the NYSE Composite, the Canadian market, the mid caps, small caps and the S&P 1500. Continue Reading

• By Greg Schnell, CMT, MFTA
• August 28, 2020

The US markets closed higher on the week with the SPY ETF breaking out to all time highs. With all of my breadth data, almost everything is positive here. My SSIH indicator drifted lower with the weakness in gold and a few other areas to 95.8 %. I hear all the noise around me about divergences but the price and momentum action continue to say higher.

Last week I mentioned “Bonds made a very important hammer candle this week giving some reasons to be be bullish the banks. The Bank ETF was up on the week nicely. This bond hammer follows last week’s Fed meeting,
so this is a bullish time to look for changes.” Well, this week, bond yields soared. It was a massive change that bodes well for financials. Continue Reading

• By Greg Schnell, CMT, MFTA
• August 18, 2020

The US markets closed higher on the week with the IWM small caps ETF joining the party and moving above the June highs. With all of my breadth data, absolutely everything is positive here. My SSIH indicator moderated marginally, still at a blazingly solid 97.6 %. I here all the noise around me about topping but the price and momentum action continue to say higher.

Breadth is currently rock solid. Bonds made a very important hammer candle this week giving some reasons to
be be bullish the banks. The Bank ETF was up on the week nicely. This bond hammer follows last week’s Fed meeting, so this is a bullish time to look for changes.

Continue Reading

• By Greg Schnell, CMT, MFTA
• August 10, 2020

The US markets closed higher, with a big lift on Friday afternoon. This closed out the day, the week and the month almost at the top of the $SPX bar. Thursday, four of the big cap tech names reported and three of four beat the numbers. The Nasdaq 100 had its highest weekly close, but slightly below the July highs. Let’s not split hairs here. It was a big bullish finish to the month. Continue Reading

• By Greg Schnell, CMT, MFTA
• August 5, 2020

The US markets drifted lower, with the leading large-cap tech names selling off and moving below their trend lines. Materials and retail now have the highest SCTR rankings for sectors. Both the Nasdaq and SPX made higher closing highs early in the week. Continue Reading

• By Greg Schnell, CMT, MFTA
• July 29, 2020