Ratio charts of various items vs. SPY (or SPX)…
On a relative basis, broad commodities are not happening and neither is an inflationary backdrop at this time.
CDNX-SPY is fading now, in line with the potential double top we reviewed on nominal CDNX in a post on a Pot stock last week.
The Russia aspect of the ‘Trump trade’ is done for now.
China large caps vs. US large caps are not actionable.
EMs vs. SPY are not actionable.
What is and has been actionable is the Medical Device sector, as we have beat you over the head with repeatedly. Again, these are ratios. Nominal IHI is overbought.
Energy sector vs. SPY is nowhere other than potentially making a double bottom.
Financials made a bullish move. If interest rates resume rising the move will be real. If they drop, not so much.
Another ‘Trump trade’, Materials, is close but not yet breaking out of its ‘vs. SPY’ downtrend channel.
A leading indicator, small vs. large caps, is in a bull flag. A breakdown puts the market on risk ‘off’ alert. A break upward from the flag… party on Garth.
Lots more ‘vs. SPY’ ratios and other indicators out there to consider. But hopefully this adds a little to your overall market management perspectives.
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