If it seems I am all over the map, you are not imagining things. This is one of those days during one of those weeks where a lot is going on, and since we are talking about whipsaws in the markets why not whipsaw you a bit with a couple updates?
This NFTRH+ post is sent to the entire list because it is a macro update as well as a trading one for those who would short. So with the previous update having ruminated on a possible market bounce, let’s look at some still-bearish sectors that the market has not yet managed to put in bounce mode.
Consumer Discretionary (XLY) has broken below a support line. If it does not recover this line the downside target would be around 85.
Incidentally, here is a daily view of the XLY/XLP ratio we sometimes review for its would-be bear analog to 2007 (if XLY breaks down vs. XLP the signal is a move to ‘defensive’ and risk ‘off’ in markets). It has not broken down, but it has taken a beating. We’ll update the monthly view on Sunday as we often do.
Healthcare (XLV) continues not to look good at all as it is breaking a support line today. If that breakdown holds, the downside target would be around 75.
Just another in-day snapshot I’ll leave you with. Obviously, a short covering pop in the markets, if applicable, could undo these setups. But I assume you may like to see what currently is, not what would or could be, even if just on an in-day view.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.