This week the markets took a breather from the bull run. However, there appears to be mixed signals and this crossroads is where the markets and investor decide the next move in the coming weeks. A very important juncture to watch closely…
The S&P500 weekly managed a close above the 55EMA as the MACD crossed up. Looks bullish, clear as daylight.
The JNK High Yield Bond ETF is a leading indicator that is continuing to be bullish. It just met its 55EMA (at the previously marked target) and pulled back slightly to stall for the week. MACD is bullish. This needs to break above and hold above 35.5 over the next few weeks to continue to be bullish.
The NASDAQ index is also clearly bullish, similar to the S&P500 futures. I just read that this index is a current leading indicator for the broader S&P500.
The Russell2000 ETF is also bullish, just meeting its 55EMA. A decision making time!
The DJ Transports, believed as another leading indicator, is similarly bullish, having just met its 55EMA as well.
Overall, the US indices all look bullish, and are likely to continue to be so. This is regardless what is being published in the media, and the varied calls of bull and bear from various opinions.
Looking further into other markets…
The China Large Cap ETF, FXI, just popped over its 55EMA and is hovering around that level. This is happening during the Chinese New Year week, which may be discounted somewhat. Nonetheless, the bigger picture suggests a bullish trending, in line to reach the upside target set.
The India Nifty ETF is hovering around the 55EMA, and appears to be undecided.
The Emerging Market ETF is similarly hovering around its 55EMA. Although the MACD is turning bullish, a point of concern is the candlestick of the week, especially appearing as a failure of the 55EMA. Although it is the 5th candle of the uptrend (5th candle reversal), it remains to be seen if it is a one off or a reversal.
The Latin America ETF kept above the 55EMA and made a new high but the week clocked a nasty looking candlestick. This is countered by the MACD crossing into the bullish territory. With a bullish background, there may be a healthy retracement coming.
The EM Bond ETF is also having a similar pattern at the 55EMA, although it appears to be on track to hit the target. We may see a pullback in the coming week…
The GDX Goldminers ETF is still very bullish. Enough said.
The Singapore ETF is, unfortunately, one of the weakest market under my watch. Although it is a green candle, it appears slightly more bearish than all the others and is in for a pullback with a very high chance.
The coming week should see a video variation of volatility. This is a fake out or a shake out? You decide… and for sure, time will tell.
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