What's Changed in the Last 24 Hours, Technically
On Tuesday I got a nice email from technician Mark Newton, CMT over at Greywolf Execution Partners. He put out a list of what's changed technically in the past 24 hours. I thought this was interesting and wanted to pass it along:
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A few things that have changed in the past 24 hours:
1) Equities having a tough time pushing higher after having reached former highs - SPX, RTY.... SPX failed to follow-through on yesterday’s gains and now dropping .30% led by Financials lower, Transports, Tech hardware, Media, Autos.... Divergence on indices all hitting highs in unison continues to be concern.. Volume still fairly low, and breadth about 3/2 negative with 30 mins til bell
2) 10, 30 YR Yields showing signs of rolling back over after minor bounce from early February (GIVEN THE + CORRELATION WITH STOCKS, this could prove important)
3) JPY along with EURJPY have stalled out after recent run with signs of Dollar/Yen starting to turn back lower of late given the last couple days price action
4) Emerging markets starting to resume recent weakness - EEM has broken BACK down to new lows in relative terms to SPX, and signs of EM currencies starting to peak - TRY, RUB
5) Retailing continuing to bounce after its severe 3 month pullback, which is helping Consumer Discretionary start to turn back higher after its January underperformance - Stocks like GPS, BBY, TIF attractive in the short run
6) Energy continues to be an area that’s a good risk/reward long sector-wise, having recently bottomed and turning higher, despite ENERGY COMMODITIES backing off a bit- CL, NG, etc
7) Consumer Staples showing signs of pushing higher and relatively outperforming today after a lengthy few month RELATIVE downtrend vs SPX- stocks like RAI, STZ and the grocers all pushing higher- Still might be tough to call any type of change in trend in staples back to positive just yet, but these stocks hitting new highs remain the ones to favor/overweight
8) Financials testing new RELATIVE lows vs the SPX which is troublesome in expecting immediate equity strength given the weighting of Financials in the SPX
9) Uranium stocks the newest low priced group to begin a large momentum based move, echoing what’s been seen in Marijuana stocks of late, and the number of small priced stocks beginning to emerge from bases- some companies with little or no earnings, while Social media stocks and other highflyers hit new highs, drawing interest is a cautionary sign
Source:
Mark Newton - Greywolf Execution Partners
Tags: $SPX $RUT $SPY $IYT $XLF $XLK $TLT $ZB_F $TNX $EURJPY $USDJPY $FXY $EEM $CL_F $IWM $TIF $BBY $GPS $RAI $STZ