As shown below, the market is currently being carried by tech, retail/consumer discretionary, and banks. These sectors do have a big impact on the daily movement in the S&P 500 Index – so gains can continue, but we would prefer to see leadership broaden in the coming days and weeks.
For those with limited time, the most important technical points in the video below begin at the 9:34 mark. Key points:
- 00:00 - 03:55: CCM Models remain bullish – DeMark comments.
- 03:55 - 07:58: German stocks (EWG) pass technical retest.
- 07:58 - 09:34: Bull-bear bullet points.
- 09:34 - 16:17: Financial stocks have a similar look to a bullish set-up from 2009.
- 16:17 - 21:00: S&P 500 history of money-printing induced bottoms (1998-2012).
- 21:00 - 25:15: Longer-term buy signals for vast majority of global stock markets are in place.
After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.
A concern, or bearish counterargument, not included in the video above, is the narrow leadership in the current market. Outside of technology, retail/consumer discretionary, homebuilders, and banks, there are few sectors, asset classes, or regions of the globe exhibiting strong relative strength.
Source: Ciovacco Capital
