Remember to share:
Share

The Dow, S&P 500, and Nasdaq have completed one of the best January through June periods since 2009. The Nasdaq Composite was the strongest of the three averages.  However, during the last few weeks, technology was under more selling pressure than the other major averages. Intermittent rallies have been suspect.

Up until now, most price uptrends remain intact as declines have been contained.  When a decline has occurred, buyers have stepped in to stabilize the market. Key support levels have held. In the past, when the first half of the year was positive, the odds favored further gains for the remainder of the year. However, this may not be the case this year.  The second half of this year could be a bumpier ride, along with increased volatility and sector rotation.

Other sectors in addition to the Nasdaq have clear negative momentum patterns for the short, intermediate, and long term.  Clear negative divergences are showing up in MACD.  So far price trends remain up on most the major averages. However if more uptrends are broken, a more serious decline could begin. I am recommending review your portfolio, have an exit strategy ready to put into action in case further short term selling continues.  Caution is warranted until the tape action improves.

 

Intermediate-term charts suggest caution: Momentum is undoubtedly weakening.

SPDR S&P 500 (SPY) Weekly ETF (Top) and 12-26-29 MACD (Bottom)

The top portion of the chart is the weekly SPDR S&P 500 ETF (SPY) that is comprised of 500 stocks of the largest companies in the U.S.   The S&P 500 (SPY) has been in a weekly uptrend since 2016. The SPY stalled early in late February at 240.32, failing to reach the upside channel. The SPY then pulled back to 3.62% to 231.61 before proceeding to make another higher high on June 5, 2017.  Once again the SPY failed to reach the upper channel.  When the top of a trading channel is not reached on the second attempt, it’s normally not a good sign. A break below 234.50 on closing basis would break the uptrend.

More time is needed before another rally attempt or a decline begins. The encouraging sign is the uptrend remains in effect (black line) from January 2016. If the SPY turns higher and can get through the old highs, then a rally attempt towards the upper channel objective 256.00 would be possible.

The lower portion of the chart is the 12-26-9 MACD, a measure of momentum.  MACD confirmed the price high of the S&P 500 (SPY) in March, suggesting another rally attempt would occur. After a short pullback the SPY did indeed rally to make a new high. However, MACD was unable to confirm the high (red circles), and MACD has also broken its uptrend from January 2016 (black line).  This is a clear warning sign risk is increasing.

ETF Corner: Negative Divergences Have Formed on Weekly Charts

Weekly Price – Utilities SPDR (XLU), SPDR S&P MidCap 400 (MDY), iShares Russell 2000 Index (IWM), Consumer Staples Select Sector SPDR (XLP), (top of charts) and MACD 12-26-9  (bottom of charts).

 

Similar to the Nasdaq and the S&P 500 (SPY), prices have made a higher high (green circles) during the latest rally in the broad market. Notice the top chart of iShares Russell 2000 (IWM) and SPDR S&P Mid Cap 400 (MDY) above.  Price has also made a higher high in the following defensive sectors. See the top chart of the Utilities SPDR (XLU), and Consumer Staples Select Sector SPDR (XLP) above (green circles).

However, notice the weakening momentum patterns forming. MACD in all four ETF’s have failed to confirm their price highs (red circles).   A clear negative divergence has formed. Weekly MACD suggests further price gains could be limited and these sectors could continue to struggle as investors rotate into other areas of the market.

The Consumer Staples (XLP) and Utilities (XLU) weekly price uptrend have also been broken (black line).   The weekly/intermediate trend is now down, increasing the odds of a more serious decline.

The Russell 2000 (IWM) and S&P Mid Cap 400 (MDY) remain in price uptrends, positive for now.  However, I recommend watching carefully if they also break their intermediate price uptrend. If this happens, expect more selling pressure to occur on the overall market.  Key support on IWM is 137.00. A break below on a closing basis would mean potential trouble ahead.  New buying is not advised at this time.

The SPDR S&P 500 (SPY) Daily Price And Key Uptrend Line

The S&P 500 (SPY) has been in a very strong daily uptrend since December 2016 and has been up for 8 months in a row.  Yet, the SPY is now very close to breaking the daily uptrend. Key support is at 239.00. Any daily close below 239.00 for two days would suggest the decline could accelerate further.

MACD has worked off its overbought condition without the SPY giving up much ground. It will still take a few days of sideways action, or a decline in the SPY for the MACD to be oversold and move into favorable position to support a rally.

Summing Up:

Technology has been the leader of the major averages this year. However, during the last few weeks technology has been under more selling pressure than the other major averages. Now other sectors of the market such as SPY, XLU, XLP, IWM and MDY ETFs are also looking suspect, because of bearish negative divergences in MACD that have formed. The Consumer Staples (XLP) and Utilities (XLU) weekly price uptrends have been broken.  The Russell 2000 (IWM) and S&P Mid Cap 400 (MDY) remain in price uptrends, positive for now.  A break below key support at 137.00 on the Russell 2000 (IWM) on the close would mean trouble ahead.  In addition any daily close below 239.00 on the SPY for two days would suggest the decline could accelerate further.  New buying is not advised at this time.  Caution is recommended until the tape improves.

I would love to hear from you. Please call me at 516-829-6444 or email at bgortler@signalert.com to share your thoughts or ask me any questions you might have.

*******Article published by Bonnie Gortler in Systems and Forecasts July 7, 2017

Disclaimer: Although the information is made with a sincere effort for accuracy, it is not guaranteed that the information provided is a statement of fact. Nor can we guarantee the results of following any of the recommendations made herein. Readers are encouraged to meet with their own advisors to consider the suitability of investments for their own particular situations and for determination of their own risk levels. Past performance does not guarantee any future results

If you like this article, then you will love this!

 

Free Instant Access to Grow
Your Wealth and Well-Being
E-Book HERE

 

 


 

Disclaimer: Although the information is made with a sincere effort for accuracy, it is not guaranteed that the information provided is a statement of fact. Nor can we guarantee the results of following any of the recommendations made herein. Readers are encouraged to meet with their own advisors to consider the suitability of investments for their own particular situations and for determination of their own risk levels. Past performance does not guarantee any future results.

 

 

Remember to share:
Share

What could you do today to ignite successful wealthy healthy living? By using the right financial tools you can enjoy today and plan for tomorrow. There are smart, simple practical strategies that give you solutions so you can take advantage of opportunities for achieving your short and long term goals in accumulating wealth.

The time has arrived to create change. How much of a difference would a shift in your thinking make in your life, or is it that you only need a solid plan of action in order to help you meet your financial goals? Would you be willing to do what it takes to reap the reward? Think about this. What is it costing you today by not creating the change now? Doing the same thing over and expecting something different will not move you to a higher level from where you are at this very moment. You must take action to reap the benefits.

Ignite your investing methodology with a few wealthy healthy investment tips that are simple, practical, and doable as you learn more in order to grow your wealth. Here are a few insights that will help you along the way.

Simple Wealthy And Healthy Investment Tips:

  • Be in private noise free zone and think about what are your financial needs that you desire for your lifestyle.
  • Write down a mix of short term (up to one year) intermediate term (1 to 5 years) and long term, (5 years or more) personal financial goals that you can look at often.
  • Have a conversation with an investment expert.
  • Invest in the stock market. Use mutual funds, a simple way to invest to accumulate wealth, and you can start with a small amount of money.
  • Before you make an investment, read the prospectus, or call the mutual fund family. You can get information by doing a Google search, so you don’t pay unnecessary redemption fees, or extra expenses.
  • Diversify your assets to limit risk. Asset allocation is how you balance your wealth. Take small position in securities, 2-3% of your assets, so no one investment can hurt you.
  • Trade in the direction of the trend and do not let your losses build, manage your risk.
  • Monitor your investment portfolio to see how it is performing compared to the major market indices such as the S&P 500.
  • Start a savings program early for you to fall back on if needed. You are less likely to have to borrow money which could be at a high cost and be a burden on your finances in the future.
  • Review all of your investment accounts to make sure you have up to date beneficiaries listed to avoid unnecessary legal conflicts.

Start your journey to wealth sooner rather than later. Opportunity exists at every turn. Begin with a winning mindset, a positive attitude and create the change as you take responsibility NOW for your finances. Have a plan, don’t be the one to get caught up with decisions based on your emotions. State an intention and invest in YOU! You will find that your overall well-being will improve and doing so will have a positive healthy wealthy impact on your future.

Special Notes and more insights to come.

There are lots of changes that are new and exciting. I’m really happy about what is happening now and the thrilling surprises to come. Currently, my website has new changes, I’m taking advance classes and am also part of an inspiring mastermind group. My company of 33 years has just appointed me as guest editor. Lastly, this past month I completed a very important goal by becoming a published author with my book,  ‘Journey to Wealth‘ which serves as living proof that you should never give up on achieving any goal that you set.

Years ago a seed was planted for me to write a book. I faced my fears and stepped out of my comfort zone. I used the same dedication that helped me become a weight loss champion. My approach was simple and I have now lost over 70 pounds by being slow (no rushing), keeping steady and staying persistent; and now I’m an Amazon author! btw Have you seen my new book Journey to Wealth? Check it out… ‘Journey to Wealth‘ is now available on Amazon.

Click here to find out more

Social Media has played a big part of me creating change and getting out of my comfort zone. It has helped to improve my well being by providing another social outlet that also works well with my business. My all time favorite platform is Twitter so be sure to get a copy of my newly revised ebook. Twitter Magic, for FREE. It’s a quick read to help you with your social media presence while also helping you build a quality following as you grow your business. Start enjoying your social media experience on Twitter and download your copy today. Click Here for instant access

I have another gift for you. Join me for a free 30 minute “Ignite Inspired Wealth and Health” Discovery Session as a way to fire up a workable plan to help you meet your goals, build your dreams, and increase well-being in your life. Visit here to schedule. ~Bonnie

    Let’s Connect    Subscribe     FB        Twitter       Linkedin      Pinterest

Remember to share:
Share

It is such a pleasure to share with a truly incredible way for you to ignite your new year like never before. Each day you will find a Life, Learning, Wealth or Well-Being Tip delivered to your inbox with also some incredible inspiration, free gifts and special offers included.  As a bonus I am also giving away a Grand Prize to a drawing winner on February 1, 2014. Every time you comment on my blog BonnieGortler.com or comment on my Facebook page, BonnieGortler.com :: BG Enterprises,  between now and Feb 1st your name will be entered into the drawing for a fabulous prize. (To keep things fair only 1 comment per day per person will be entered into the drawing). Make sure to invite your friends and also remember to hit the like button too! Like I said these are some truly awesome gifts and each are well worth sharing.

Mark your calendar for Feb 1st because that’s when I will announce the Grand Prize drawing winner who will choose between a $25 Amazon Gift Card or a Starbuck’s $25 Gift Card. To sweeten the deal even more I’m including a downloadable copy of my ebook, Journey to Wealth: A Practical and Mindful Approach to Growing and Sustaining Your Financial Well-Being. Certainly a great combination when you consider how easy it is to grab the gifts and bonuses I’m sharing each day and for you to enter the drawing by commenting on FB or on my blog. That’s it and you could walk away as the drawing winner.. It’s going to be great fun and I look forward to reading your comments.

So get set and get ready as you enjoy a wonderful day and I’ll see you in the morning with Day 1 of the 12 days of Change to Ignite Your New Year Event! ~Bonnie

To discover how to achieve your financial dreams click here

Visit www.BGJourneyToWealth.com for more insights to growing your wealth!

 

Bonnie Gortler (@optiongirl) is a successful stock market guru whois passionate about teaching others about social media, weight loss and wealth. Over her 30-year corporate career, she has been instrumental in managing multi-million dollar client portfolios within a top rated investment firm. Bonnie is a uniquely multi-talented woman who believes that honesty, loyalty and perseverance are the keys to success. You will constantly find her displaying these beliefs due to her winning spirit and ‘You Can Do It’ attitude. Bonnie is a huge sports fan that has successfully lost over 70 pounds by applying the many lessons learned through her ongoing commitment toward personal growth and development while continually encouraging others to reach their goals & dreams. It is within her latest book project, “Journey to Wealth”, where Bonnie has made it her mission to help everyone learn the steps needed to gain sustainable wealth and personal prosperity. Order your copy of  ”Journey to Wealth” today!

 

Remember to share:
Share

Suspendisse ut rutrum odio condimentum donec suscipit molestie est etiam sit rutrum dui nostra sem, aliquet conubia nullam sollicitudin rhoncus venenatis vivamus rhoncus netus risus tortor non. Mauris turpis eget integer nibh dolor commodo, venenatis ut molestie semper adipiscing amet cras, class donec sapien malesuada auctor. Sapien arcu inceptos aenean consequat metus litora mattis, vivamus feugiat arcu adipiscing mauris primis, ante ullamcorper ad nisi lobortis arcu.

Per orci malesuada blandit metus tortor, urna turpis consectetur.

Read more