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“On The Cusp” July 7, 2018

Posted by Tom in Thoughts.
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July 5, 2018 – This was a shortened holiday trading week not to mention a prime vacation period in the US.  Thus market activity / volumes are down.  Low volume markets tend to amplify moves; think of it was “a little goes a long way” in moving prices.  Both the Volume and Money Flow indicators below were slow to move even though price action appeared to be fairly good, especially on Friday.  Main Support level moved up to7421 on the NASDAQ Composite Index.

My sensitive market indicators show that we’re “on the cusp” of changing from short term mildly bearish to mildly bullish.  Technically we’re still in the bearish range though a nice move upward on Monday will change that.  There’s so much in the news that just about anything can pull this market in either direction.  Trade Wars, Atlantic Alliances, North Korea etc. will be the topics next week; there are a bunch.

That said, I find it interesting looking at short term sector strength (table below) that most of the top sector are considered to be defensive in nature.  Telcom, Utilities, Staples, Real Estate, etc. are near the top of the list.

Biotech had a good day on Friday with the announcement by BioGen of a promising drug that slows Alzheimer’s.  That sector was off to the races.  Tech is showing some life, but it is still too early to be sure that it’s a real move.

That’s about it for this short holiday week.  Let’s observe the markets this week on price action and see if volume picks up steadily (spikes concern me; shows that sellers are there too).          ……………  Tom  ……………

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.

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