Major US Equity Indices Show Indecision; Small-Caps Vs Large-Caps And Offensives Vs Defensives At Crucial Resistance

posted in: Equities, Technicals | 0

It is early to declare that a trend is beginning, but last week was the first time in a while that major US equity indices were indecisive, showing early signs of fatigue.  This is coming at a time when ratios … Continued

Early Signs Of Large-Cap Fatigue Spreading To Small-Caps, Tech

posted in: Economy, Equities, Technicals | 0

Signs of fatigue are showing up in US equities.  It began with large-caps, and now there are early signs it is spreading to small-caps as well as tech. The small-cap switch was turned on right after Donald Trump was elected … Continued

Indices Getting Overbought N/T – Earnings Season Underway, With Adverse Friday Reaction

posted in: Economy, Equities, Technicals | 0

If investor/trader reaction last Friday to financials’ 1Q18 results is any indication, we are in for some interesting weeks ahead. First-quarter earnings season began in earnest last week.  For 1Q18, the sell-side expects $35.63 in operating earnings from S&P 500 … Continued

Relief Rally Possible Near Term, As VIX Unwinds Overbought Condition

posted in: Economy, Equities, Technicals | 0

Last week’s mini sell-off in U.S. equities did not materialize all of a sudden.  This was building for a while. The Russell 2000 small-cap index in particular peaked as early as July 25. Investors/traders in general gravitate toward small-caps when … Continued

Russell 2000 Loses Feb ’16 Trend line – Albeit Slightly – Potentially Important Development

posted in: Derivatives, Equities, Technicals | 0

The Russell 2000 small cap index is dangerously close to breaking down.  On Wednesday, it violated a rising trend line from February last year – albeit only slightly. Of the four major indices, the Russell 2000 is the first to … Continued

With Handsome Gains YTD, Major U.S. Indices Give Out Signs Of Fatigue

posted in: Economy, Equities, Technicals | 0

Amidst 2Q17 earnings and elevated multiples, some signs of fatigue are showing up on major U.S. indices. As of last Thursday, 2Q17 operating earnings of S&P 500 companies were on course for $30.70.  In the year-ago quarter, they were $25.70 … Continued

Dow On Pace To Creating History, Even As Sources Of Tailwind Stretched

posted in: Economy, Equities, Technicals | 0

The Dow Industrials is on pace to creating history this week.  Last Friday, it rose for 11 sessions in a row, for a cumulative gain of 3.8 percent.  The longest streak was recorded in January 1987 when it rallied 11 … Continued