The messy market environment continues.
It’s been happening for months.
Underneath the surface, we’re seeing rotation among sectors and the overwhelming theme, when you look through as many charts as we do, continues to be: MESSY.
There’s little or no evidence yet that this is the beginning of a larger more substantial sell-off. In fact, the data coming in continues to support that these rangebound markets are coming within the context of a longer-term bull market for stocks.
The, “This is Year 2 of a Bull Market” theme appears to still be playing out.
The world of stocks is not the S&P500 or Dow Jones Industrial Average. Look beyond that and what will you find?
A lot of messy, rangebound stocks, sectors and industry groups.
Meanwhile, Yen, Gold and Treasury Bonds stopped going down. Have you noticed? This is a flight to safety, as opposed to the flight away from safety that we had seen over the prior year.
Is this the first higher low in relative strength for Consumer Staples? If it is, then that’s consistent with this market being MESSY FOR LONGER.
Here is the S&P500 overlaid with Consumer Staples relative strength (inverted). So this lower high in the black line represents a Higher Low for Consumer Staples Relative: [Read more…]