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 Equity market overview—bullish developments remain in place

The stock market has been extremely resilient, filled with enthusiasm since the presidential election.  Major averages have made new all-time highs on a regular basis.  Market breadth has been mixed from day to day, with Nasdaq breadth not yet confirming the highs in the Nasdaq Composite.  Whenever potential warning signals show up (such as weakening momentum or unnerving world news events) and the market looks like it might be ready to fall, instead the bulls step in to buy and the market rebounds.

Technology has been the star performer, continuing to charge ahead, leading the advance outperforming the other major averages.  Overseas markets have joined the party, high yield bonds remain firm, and VIX (a measure of fear) is near its lows.  All of these are signs of a healthy market. Our models remain overall neutral-positive.  The intermediate and long-term trend remains up. There is no evidence of a change in trend until proven otherwise.   Review my last Systems and Forecasts article dated 05/25/17 for 11 clues you want to watch for a potential trend change.  The trend is your friend so why fight it.

Let’s turn now to an area where we haven’t talked about in a long time—Gold.  You can trade gold bullion with the SPDR Gold Shares ETF (GLD).  The charts suggest that gold now appears ready to shine.


It is easy to trade gold bullion using the SPDR Gold Shares ETF (GLD)

GLD has a relatively low expense ratio of 0.40 and, like the physical metal, is 1.43 times more volatile than the S&P 500 (SPY).  Investing in commodities entails significant risk and is not appropriate for all investors.  GLD, for the most part, is not usually whippy; it tends to be trendy, with its price moving steadily in the same direction for extended periods.  After GLD establishes a trend, it could remain in that trend for many months or years at a time.   Gold (GLD) appears now to be at a critical juncture that could represent the early stage of a long term rally.


SPDR GOLD TRUST (GLD) WEEKLY (ETF) and 12-26-9 MACD

 

The top portion of the GLD chart above shows the weekly active trend channel in effect (blue lines).  Purchasing the GLD is an easy way to participate without holding the physical commodity.

Gold (GLD) bottomed on 12/07/15 at 100.23 after years of decline, being out of favor by investors.   A sharp rally followed, before GLD fell again, retracing most of its gains and bottoming at 107.00 on 12/15/16.  Since hitting bottom last December, GLD has traced out a series of higher low and higher highs.  This week GLD penetrated the high on 04/17/17 at 123.07 and has now broken its downtrend from its peak (orange line) from 07/05/16.   There is more room for further price gains, especially if GLD can penetrate the middle channel.  A break above 125.00 would suggest a potential upside target to 138.00.

The lower portion of the chart is the 12-26-9 MACD, a momentum indicator.  MACD had a timely entry from an extreme oversold condition. Only recently has MACD turned positive.  There is plenty of room to the upside before MACD will be in an overbought condition. MACD is still rising, showing no signs of weakness.  The trend of gold has improved.  With equities at new highs, now could be a good time for investors to add some diversification to your portfolio into a sector where the trend has turned favorable, before further interest from other investors and institutions.

SPDR GOLD TRUST (GLD) MONTHLY (ETF) and 12-26-9 MACD

The top portion shows the SPDR Gold Trust (GLD) monthly (ETF) chart. GLD has been out of favor for many years.  GLD peaked in September 2011 (yellow circle). Investors are more optimistic about the precious metal and it’s up 12.5% this year through 06/06/17.   After breaking the shorter term monthly downtrend (pink line), GLD had a brief rally but didn’t have enough strength to break the longer term downtrend from the September 2011 high (blue line).  Most times after weakness prevails for long periods of time, the first rally attempt normally is unsuccessful and not sustainable to continue.  Another test of the low is required.  The second attempt tends to be a safer, profitable and more sustainable.  GLD appears to have made a successful test of the low.   For those of you who are willing to take the risk, I recommend adding GLD to diversify your portfolio, using 107.00 on a close as a stop.

The lower portion of the chart is the 12-26-9 MACD, a momentum indicator. MACD has been oversold since June 2013, below 0, now on a buy and gaining strength.   Gold is looking more appealing and it is also gaining some relative strength against the SPY. There is a good chance if GLD does indeed move higher you can expect additional money to flow into this sector from investors and institutions to fuel a further advance.  It would be bullish if GLD breaks above 125.00, (the same as the weekly chart), which would break the monthly downtrend from 2011 (blue line) and then penetrates 131.15, the July 2016 high.

Summing Up:

Our models remain overall neutral-positive.  The stock market remains resilient and continues to work its way higher with the bulls in control.  There is no evidence of a change in trend until proven otherwise.  An area out of favor with investors appears ready to shine. GLD appears to have made a successful test of the low.  A buying opportunity has developed in GLD on weekly and monthly charts.  I recommend adding GLD to diversify your portfolio, using 107.00 on a close as a stop.

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.

 

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*******Article published by Bonnie Gortler in Systems and Forecasts June 08, 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.

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The short-term decline in April has ended.  The Nasdaq, S&P 500 and Russell 2000 all successfully tested key support levels this past week.  The recent news of possible tax cuts sooner rather than later, an optimistic perceived outcome to the election in Europe, and a good start to the earning season has spurred a potential new leg of the advance.   Overhead resistance on some indices exists.   However, the Nasdaq 100 (QQQ) has made a new high, has broken through resistance giving new upside projections, which could carry the overall market higher for the next several months.   More time is needed to know if other averages will follow suit or if the present rally will fizzle.   However my prediction is there is more room to the upside.

Technology leads the way.

PowerShares QQQ ETF (Nasdaq 100 Index) Weekly Price and Trend Channels (Top), and MACD 12-26-9 (Bottom)

The top part of the chart shows the weekly Power Shares 100 (QQQ), an exchange-traded fund based on the Nasdaq 100 Index and its operative trend channel.  The QQQ includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq stock market based on market capitalization.  As of 04/24/17, Apple, (AAPL) is the largest holding comprising 11.84%, Microsoft Corp (MSFT) 8.20%, Amazon.com, Inc. (AMZN) 6.80%, Facebook, Inc. Class A (FB) 5.38%, Alphabet Inc. Class C (GOOG) 4.70%, and Alphabet Inc. Class A (GOOGL), 4.10% totaling 41.02%

The QQQ has been rock solid this year, leading in relative strength vs. the S&P 500, and up almost twice the gains of the S&P 500.  The QQQ has slightly penetrated the middle channel after a 9-week consolidation, where the QQQ traded between 129.38 and 134.00 (the red circle), now trading at 135.14.  The bullish outcome is not a surprise.  (See my article in the 03/15/17 Systems and Forecasts: Weekly MACD confirms the advance: Higher prices anticipated).  The next upside target is 157.00, a 16.2% gain from present levels. The intermediate trend remains up as long as the QQQ remains above the up trendline line (orange).

Because the initial upside thrust since the election was so strong, the expectation the first decline wouldn’t be significant is exactly what has occurred.  The present breakout needs to be watched closer.  Keep an eye on how Apple (AAPL) performs, the largest holding of QQQ.  If the Nasdaq continues to show leadership, making new highs, then it could support the market and help the technology sector over the next several months.  

On the other hand, if the QQQ falls below 129.00, retracing its recent gains, a warning sign of a potential change of trend would be given.  If the QQQ falls below 125.00 breaking the uptrend, (orange line) more caution would be warranted with possibly a larger correction on the horizon than the decline in April.

The bottom half of the chart is MACD (12, 26, 9), a measure of momentum.  It was a bullish MACD pattern that confirmed the price high made in QQQ in February 2017, before the recent consolidation.  The uptrend remains in effect (pink-line).  The QQQ has made a new high.  If MACD turns down failing to make a new high, a negative divergence would occur.  Over the next several weeks watch to see if MACD makes a higher high.  This would be bullish.  If MACD turns down, this would complete the negative divergence pattern and would be considered bearish. 

Summing Up:

Our models remain overall neutral-positive for the intermediate term which means upside potential remains greater than downside risk.  Technology stocks continue to lead the market higher.  After many weeks of consolidation and weakening momentum, the Nasdaq 100 (QQQ) has broken through resistance giving new upside projections to 157.00 which could carry the overall market higher for the next several months.  The advance seems to be broadening.  Market breadth is improving, financials and small caps have come to life again gaining in relative strength. These are all signs of a healthy market.  The intermediate uptrend in Nasdaq (QQQ) price and in MACD is intact.  If the uptrend is broken on either price or MACD more caution will be necessary, as the odds would increase the advance will fizzle and no longer sizzle. For now, the bulls remain in control, continue to enjoy the ride. 

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.

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*******Article published by Bonnie Gortler in Systems and Forecasts April 27, 2017

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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.

 

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During the past five weeks the stock market held its own, holding key support levels and avoiding any major losses. The S&P 500 remains near its highs, holding above key support as it has been consolidating within a narrow trading range. Nonetheless, bullish momentum slowed down in US equities during March. This is normal considering the huge upside thrust that occurred in January and February. The Nasdaq Composite continues to lead the S&P 500 in relative strength, a bullish sign.

Fewer stocks have made new highs during the advance because of the decrease in momentum. Financials and small caps were the leaders of the advance in the aftermath of the election. However, they have weakened considerably in the past month. Continue to give the benefit of the doubt to the bulls. On any weakness look for buying opportunities with the expectation of another rally attempt taking place sooner rather than later.

Buying Opportunity in Energy

One of the worst performing sectors in the first quarter was energy. But that might be about to change. The short and intermediate term has shifted from down to up. This could present an opportunity to buy low rather than chasing a rally.

Energy Select Sector SPDR ETF XLE Daily (TOP) and MACD 12-26-9 (Bottom

The top chart is the Energy Select Sector SPDR (XLE) that tracks the Energy Sector Index, investing in common stocks in the Oil, Natural Gas, and Oil & Gas Drilling & Exploration industries.  As of 04/7/17 its top 4 holdings are Exxon Mobil Corp (XOM) 23.11%, Chevron (CVX) 15.47%, Schlumberger Ltd (SLB) 8.23%, and Conoco Phillips (CON) 4.66%, totaling 51.47%. Be aware the XLE is an aggressive investment vehicle.  The XLE 90-day volatility is 1.72 compared to the S&P 500 of 1.00.

The XLE peaked on 12/16/2016 at 78.45 and steadily declined through the first quarter of 2017, making lower highs and lower lows forming a down trend. The XLE bottomed 03/27/17 at 67.86. The downtrend was broken on 04/05/17.   However, the XLE reversed to close near its lows suggesting the breakout could be false.   There was no follow through to the downside so investors stepped in to buy.  On 04/10/17 the XLE closed clearly above the downtrend line and is in the process of testing the breakout.  Short term support is at 70.00, resistance is at 73.00.

The bottom half of the chart shows the 12-26-9 MACD, a technical indicator that shows you  changes in direction, momentum, and strength of the stock’s price. MACD generated a buy in late March from an oversold condition below 0, is gaining momentum, and has broken its downtrend from its December 2016 peak after moving sideways since February.  This suggests the downside risk should be contained in the near term.

Energy Select Sector SPDR ETF XLE Weekly (TOP) and MACD 12-26-9 (Bottom)

The top portion shows the weekly SPDR S&P Energy Select SPDR ETF (XLE).  The XLE was trending higher for 2016, peaking at 78.45.  This year the XLE has been the opposite, out of favor by investors, much weaker than other sectors to start the year.  The XLE this past week broke the weekly downtrend (purple line), shifting the intermediate trend to up.  Resistance is at 76.00.  A break below the recent low at 67.86 would negate my near term bullish outlook and increase the odds of a further decline.

The bottom half of the chart is MACD (12, 26, 9) a technical indicator that measures momentum. MACD gave a sell in January. However, MACD has now reset, falling to below 0.  Downside momentum has subsided.  If the XLE turns up now, MACD would generate a fresh buy signal supporting the bullish case the XLE is ready to resume its bullish trend from 2016.

In Sum:

The market continues to be resilient.  The S&P 500 is holding above key support consolidating within a narrow trading range.   Another rally attempt toward new highs is possible sooner rather than later. Continue to give the benefit of the doubt to the bulls on any weakness looking for buying opportunities.  A buying opportunity has developed in the energy sector (XLE).  The short and intermediate trend has shifted from down to up.  As long as the XLE remains above 67.86 you can anticipate higher prices in the near term and risk to be limited.

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.


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*******Article published by Bonnie Gortler in Systems and Forecasts April 13, 2017

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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.

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Many stocks finished October down for the month.  The weakness extended early in November where the S&P 500 index was down 9 consecutive days with concerns about the outcome of the presidential election.  A two day bounce followed, alleviating the oversold condition that was created.  As the votes were gathered investors were nervous and the overnight futures were down sharply suggesting a lower opening on Wednesday.  During the night, Donald Trump was named president.  The panic was gone by the time the market opened.

Many market averages rallied strongly off their lows. There was a split market. Sectors such as Health and Finance moved higher, and other sectors were under pressure such as Utilities, Emerging Markets, Consumer Staples and Real Estate.   Many investors, institutions and hedge funds were surprised by the outcome and had to change their investments quickly, or decide they wanted to be invested now that the election was complete.  It’s still early to forecast what is ahead.  Our trading models are in a neutral positive condition entering the most favorable seasonal period of the year, suggesting downside risk is limited.

You can expect more wide intraday trading swings in the market until the dust settles. This could take some time.   A test of the lows over the next 3-6 weeks would be a safer buying opportunity if investors shift from buyers to seller.

What to Monitor Now for a Safer Entry

  • Monitor overseas markets to see if they move higher than 11/09/16 close.  Watch the following international ETF’s, Ishares China (FXI), Emerging Markets (EEM) and Mexico (EWW).
  • Look for intraday trading swings to be less than 1% in the S&P 500 (SPY) and Russell 2000 Small Cap Index (IWM).
  • Long term interest rates stop rising.  Watch TLT iShares Barclays 20+ Yr. Treasury Bond (ETF).
  • High Yield Bond Mutual Funds turn up and take out their recent highs. Use (HYG) or (JNK) as a benchmark.
  • Momentum in intermediate and long term charts to turn more favorable, strengthening instead of weakening.
  • An improvement in market breadth daily and on a weekly basis.
  • Watch to see if the technology sector becomes a leader over the S&P 500. Watch the Nasdaq 100 (QQQ) and the Semiconductors HOLDR (SMH).  Also keep an eye on Apple, which has been under some selling pressure the past few weeks.
  • When the market declines notice the movement in VIX (an index that measures fear).  Look if VIX accelerates quickly or it moves up quietly.  When the market falls it would be a bullish sign if VIX moves lower.

The SPDR S&P 500 (SPY) Weekly Price And Channel

110916-weekly-newsletter

The chart above is the weekly SPDR S&P 500 (SPY) ETF that is comprised of 500 stocks of the largest companies in the U.S. The S&P 500 (SPY) broke below its trading channel breaking the uptrend (green line). The SPY looked like it would go lower however; there was no follow through to the downside and after the election reversed sharply higher.

What a difference a few days can make. An explosive rally developed after making a low during the night of the presidential election, the S&P 500 (SPY) closed at 216.50 on 11/9/16. The SPY is in the process of testing resistance between 217.00 and 220.00 from July 2016 highs (blue circle).  If the S&P 500 (SPY) can get through resistance, it could potentially go to the upper channel at 228.00.  If the market turns down, support is at 214.00 followed by 212.00 and 197.00.

The lower portion of the chart is the 12-26-9 MACD, a measure of momentum. It was a good sign MACD confirmed the high in July before generating a sell suggesting another attempt at the high would be made.  Momentum has stopped accelerating downwards, and has started to flatten, both good signs. Notice however that MACD is not in an oversold condition where major bottoms take place.  If the S&P 500 (SPY) does rise and break out to a new yearly high and touch the upper channel, there is a good chance MACD will not confirm and form a negative divergence.

Summing Up:

Investors’ perception changed quickly from bearish to bullish after the election upset by our new President Donald Trump.  The S&P 500 (SPY) rose sharply and is again challenging resistance at 217-220 area.  The upside target for the S&P 500 (SPY) is 228.00. Intermediate momentum indicators are not in position for a major bottom and not likely to confirm the recent strength, therefore upside potential could be limited once the dust settles. Stock selection is very important now, as the market is split. Investors are moving out of defensive sectors, market breadth is weak and new lows are increasing. More wide intraday swings are expected to continue. I recommend reviewing your holdings and not being overweight in one particular sector. Don’t rush into buying stocks; look for a safer entry in 3-6 weeks to add to your investments.

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.

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*******Article in Systems and Forecasts November 10, 2016

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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.

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The stock market has quietly advanced during the first half of August. The daily price movements over the past 25 days in the S&P 500, Russell 2000, and the Nasdaq 100 have been extremely small, ranging from 0.28% – 0.43% as prices have moved higher. As long as this phenomenon continues of low day to day volatility, downside risk will be contained.

Tape action remains encouraging, many major indices have broken through resistance levels that were in place for over a year and have made new all-time highs. Market breadth has supported the advance with The New York Stock Exchange (NYSE) advance-decline line also making a new high. A market top rarely happens at a final price high that is confirmed by the (NYSE) Advance-Decline Line.
The August through October period historically is not an ideal low risk environment to be invested in the stock market. During the third quarter of an election year, like now, the negative bias is not true.
Instead, it’s positive for the market.

Our models continue to suggest favorable market conditions, although not at the level where risk is
at its lowest. There are no blatant warning signs of a potential serious decline ahead; however there are a few small non-confirmations. I would like to see the transportation average confirm the Dow’s recent high and for the Russell 2000 Small-Cap Index to outperform the S&P 500 (SPY) and make a new all-time high.

All in all, the tape remains favorable, the bulls remain in control and I believe the advance will continue.

What Are The Charts Saying?

The SPDR S&P 500 (SPY) Weekly With Channel (Top) and 12-26-9 Week MACD (Bottom)

081716 SPY WEEKLY

The chart above is the weekly SPDR S&P 500 (SPY) ETF that is comprised of 500 stocks of the largest companies in the U.S. As of 08/16/16 its top 4 holdings in the S&P 500 were Apple Inc. (AAPL) 3.12%, Microsoft Corporation (MSFT) 2.40%, Exxon Mobil Corporation (XOM), 1.92% and Johnson & Johnson (JNJ) 1.79%. Investing in the S&P 500 (SPY) gives you a broad representation of the overall large-cap U.S. stock market.

The S&P 500 (SPY) finally broke out of its trading channel beginning December 2014 after penetrating the 212-214.00 resistance on 07/11/16. Old resistance is now key support if a pullback would arise. It would be bullish if the S&P 500 (SPY) remains above this level, increasing the odds of the SPY reaching the upside target of 228.00, 5% higher. Another point of reference to watch is if the uptrend remains intact from the February lows. The green trendline in the chart shows that this uptrend remains intact. As long as 204.00 is not violated, the intermediate trend is up. Remember the trend is your friend.

On the other hand, if SPY breaks below 212.00 this would be an early warning that the intermediate trend is in process of changing, and risk increasing. If the uptrend is broken, the middle channel at 197.00 would act as the next support level.

The bottom half of the chart shows MACD, a measure of momentum. MACD is on a buy, rising, above 0, and has confirmed the price high made in the S&P 500 (SPY). MACD needs to be monitored to see if and when it turns down.

This would be an advanced warning that momentum is weakening and that a potential change of trend could occur.

MACD is now somewhat extended, but no negative divergences exist and the uptrend remains in effect.

Therefore, no need to worry yet, continue to enjoy the ride.

Summing Up:

The stock market advance quietly continues. Our models remain favorable. Market breadth and price action is positive. The advance decline line has confirmed new highs in the S&P 500 (SPY) suggesting a final top most likely hasn’t been made.

Major market averages have broken through resistance to the upside after many attempts earlier in the year.

The uptrend from the February lows remains in-tact. The trend is our friend.

In the near term, unless the S&P 500 (SPY) closes below 212.00 for two days, the benefit of the doubt goes to the bulls for the S&P 500 (SPY) to continue higher toward the upside objective of 228.00.

I would love to hear from you. Please feel free to share your thoughts, comments or ask any question you might have. Call me at 1-516-829-6444 or send an email to bgortler@signalert.com.

If you like this article, then you will love this!  Click here for a free report: Top 10 investing tips to more wealth.

 

*******Article in Systems and Forecasts August 18, 2016

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Disclaimer: This is a hypothetical result and is not meant to represent the actual performance of any particular investment. Future results cannot be guaranteed. Although the information is made with a sincere effort for accuracy, it is not guaranteed either in any form that the above information is a statement of fact, of opinion, or the result of following any of the recommendations made herein. Readers are encouraged to meet with their own advisors to consider the suitability of investments discussed above for their own particular situations and for determination of their own risk levels.

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What a difference a few weeks makes. The stock market character changes quickly week-to-week. Your perception and expectations need to change as well. Caution has given way to a more optimistic view as we’ve seen the market internals improve.

Two weeks ago, the worst quarter for the stock market since 2011 ended. The August lows were tested. More evidence of a bottom was needed (see the 10/02/15 newsletter) or a serious decline seemed very possible. After the third quarter ended, buyers stepped in aggressively to the S&P 500 SPDR (SPY) and other major averages. Equities stopped falling, a broad-market rally developed in the U.S., and global markets successfully tested the August lows.

Let’s review what has occurred since the last newsletter (10/02/15). An oversold condition in the market occurred after heavy selling in September. Stocks then rallied sharply, having one of the best weeks of the year in the beginning of October. This created a very overbought condition.

During the past two days the market has pulled back, alleviating the overbought condition. This is normal after such a large rally, but now it’s important that the market stabilizes and goes higher from here to confirm the bottom is in and a fourth quarter rally could occur.

Tape Action Gave Evidence That The Bottom Is In For Now
During the test of the lows in early October, the iShares Russell 2000 Index ETF (IWM) made a new low on 09/28/15 at 106.99, but held above 105.00 which was support. The S&P 500 (SPY) didn’t make a new low as did the Russell 2000 (IWM), holding support at 184.00.

Advancing volume on the New York Stock Exchange did increase on days when the market rose.

On 10/05/15, there was 15 to 1 upside to downside volume on the New York Stock Exchange, alleviating the downside pressure on the market.

New 52-week lows fell to below 50 on the New York Stock Exchange on 10/05/15. This is still the case as of this writing.

Momentum patterns did improve on MACD while testing the lows. Some indices such as the Russell 2000 (IWM) actually penetrated the August lows forming a positive divergence, (a new low in price was made but MACD did not). This is a bullish condition.

Overseas markets have firmed, acting much better. Many international ETF’s are up more in October than the 4.39% gain in SPY, for example Brazil (EWZ) +7.8%, Emerging Markets (EEM) +9.52% and China (FXI) +10.52% through 10/15/15.

The CBOE Volatility Index (VIX) contracted from 28.33 to 16.34, falling 42.3% over nine consecutive
days. The big decline in VIX reflects falling risk aversion among options traders.

High yield mutual funds are no longer acting poorly, helped by strength in energy. Many high yield
funds gained over 2% from their lows made in early October, a positive sign for the overall market. High Yield ETF’s (HYG and JNK) are both up over 4% since September 28. Closed-end high yield funds that were trading at large discounts also rallied strongly, gaining over 6%. The Value Line Geometric Composite, an average of roughly 1700 U.S. stocks, did stabilize after falling to 429.34 rallying above 452.00, and now is trading higher at 465.62.

What is troublesome since the test of the August lows?

As the market was testing the lows, the financials (XLF) hasn’t shown leadership as yet. Watch for the financials to be stronger than the S&P 500 by following the (XLF/SPY) relative strength ratio to see if it starts to rise sharply. If so, this would be bullish.

Healthcare (XLV) and Biotechnology (XBI) were sluggish when the market rallied from the lows. A good sign would be if they turn up and lead the market higher.

Small Caps are lagging the S&P 500 (SPY instead of being stronger and leading the market higher. If The Russell 2000 (IWM) could begin to outperforming the S&P 500 this would be a very encouraging sign that the rally could broaden. Further strength could occur ahead with more stocks participating in the rally.

The long term trend remains unfavorable after breaking up trends from 2009. There has been no major decline to create an oversold condition. Also, with the recent rally prices remain below overhead resistance. If a fourth quarter rally does occur and new highs are not made in the averages, potential bearish patterns with a double top could form.

Our models have improved, but have not generated a signal that the market is out of the woods yet.
Risk remains above average.

What Do The Charts Say?

Ishares Russell 2000 ETF (IWM) Weekly Price (Top), and MACD (Bottom)

101515 iwm weekly newslettewr useThe top portion of the chart   shows the weekly Ishares Russell 2000 ETF (IWM) which is made of companies with a market capitalization of between $300 million and $2 billion. Historically this is a favorable time of the year for small caps to rally, and the good news is the chart patterns are in position where it could be significant.

IWM peaked on 06/22/15 at 129.10 but the S&P 500 (SPY) continued higher into August. IWM has stayed within a trading channel for the past 8 weeks (top portion of the chart) but looks to me like it could be ready for a breakout to the upside. There has been no real sign of strength as of yet, but this could change very quickly. Present trading action is close to breaking the weekly downtrend (blue line) which is the first step. Next, it would be more bullish if the IWM could get above resistance at 120.00. This would give an upside objective to 130.00.

If the rally were going to fail then IWM would stall now and turn down below 109.00, suggesting another test of the lows (106.99) would take place and potentially a more serious decline could arise
if 105.00 is violated.

The lower portion of the chart is the technical indicator MACD, (a momentum indicator). With investors being more defensive, small caps have been weaker than the S&P 500. Momentum has been negative since December 2013 (green line). IWM remains far away from breaking the downside trend in momentum but I remain optimistic. MACD is oversold, no longer accelerating down, and in position and for a turn up soon if the IWM stabilizes.

iShares Russell 2000 ETF (IWM) Daily Price (Top), with a 50-Day Moving Average and
MACD (Bottom)

101515 iwm newslwtter daily use
The daily trend is down (see the pink line) as of October 15th, but very close to turning up. At the same time, IWM is in position to break above its 50 day Moving Average at 115.11. (As I write this article IWM its 115.09). After testing the lows, IWM failed the first time to get through the 50-day Moving average. The rally paused for two days and now IWM is rising once again. MACD has a rising double bottom in place with along with a positive divergence in place. This is a very bullish pattern.

Just To Sum Up:

The market internals have improved significantly since the start of October. Tape action gave evidence the bottom is in for now. Daily and intermediate trends are turning more favorable. A few troublesome items remain but overall the tape action is much improved. I am recommending watching the Russell 2000 (IWM), to see if favorable seasonality for small caps will begin and lead the market higher breaking through 120.00. If this is another rally that will fail, then the Russell 2000 (IWM) would stall now and turn down below 109.00. This suggests another test of the lows (106.99) would take place, and potentially a more serious decline could arise if 105 is violated.

I would love to hear from you! Please feel free to share your thoughts, ask your questions or
comments. Please call me at 1-844-829-6229 or email at bgortler@signalert.com.

*******Article in Systems and Forecasts October 16, 2015

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This is a hypothetical result and is not meant to represent the actual performance of any particular investment. Future results cannot be guaranteed.

Although the information is made with a sincere effort for accuracy, it is not guaranteed either in any form that the above information is a statement of fact, of opinion, or the result of following any of the recommendations made herein. Readers are encouraged to meet with their own advisors to consider the suitability of investments discussed above for their own particular situations and for determination of their own risk levels.

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A tidal wave hit the market in the last two weeks of August. Key support in the S&P 500 (SPY) was broken at 204.00, with the 6 month trading range breaking to the downside. The S&P 500 fell fast and sharp over 6 straight days of decline, losing more than 11%, to a low on 08/24/15 of 182.40 that was just above the downside objective of 182.00 mentioned in my 08/20/15 newsletter article. A sharp reflex rally followed the drop, and the S&P 500 (SPY) finished the month of August down 6.26%. Damage has been done to the long term trend. Risk has increased and the 6 year bull market could possibly be over. A bear market might have started. The S&P 500 and many major averages are in the process of testing the lows of 08/24/15 trying to form a bottom, after the poor month of August and a wild start to September.

It’s a little early to know if the market will hold near or above the recent low or whether it will experience an additional leg down. Even some of the best companies and many investors lose big money. In the past a decline of over 20% or more only happens about once every 3 and 1/2 years, so it is possible as this bull market began in 2009.

With the longer term trend broken a big question is: could this turn out to be a historically significant bear market? As of now I don’t believe so but the near term action will give more clues. I do think more time is needed for a safer entry in case the lows are taken out and another leg down begins.

Recap of Key Insights from 08/21/15 Newsletter:

What is Happening Now

Short term MACD’s on many major averages are now oversold. Momentum patterns are improving as the market is testing the lows, but with the longer term trends now negative, more time for base building is necessary.

Intermediate and longer term patterns in MACD in the Healthcare and Biotech sectors are rolling over, (losing momentum) and are vulnerable to a further sell-off. The health care sector ETF (XLV) has broken the uptrend from January 2013 with the recent market weakness. Investors have large profits in this sector and might want to lock in some of their profits on any rallies. I continue to feel this is not a safe time to enter into new positions in the health care sector, a safer entry lies ahead.

The Financial Sector SPDR (XLF) fell below 24.00, breaking the weekly uptrend since May of 2012 and is now acting as resistance.

Energy, one of the weakest areas of the stock market reversed sharply with oil (USO) rallying 24% in 3 days, a rare historical event. This has been followed by more selling, giving up 10% as of this writing. Materials (XLB), is also testing lows. Both areas are still risky for the longer term.

International equities remain weak, including emerging markets (EEM) also testing recent lows. Many of these charts have lower highs and lower lows, not the ideal picture of a bottom in place. Risk remains.

The trailing 52-week new lows on the New Stock Exchange peaked at 1336 on 08/24/15, indicating possible panic selling. With the reflex rally, new lows are down to 100, but it would be better if they fall below 50 and stay there. The trailing 52-week new highs are single digits. One day on the decline there were 0 new highs! Companies that are making profits have been hit hard in this market, falling 20-30 %
or more.

Semiconductors (SMH) have rallied to below their support at 50.00, now acting as resistance. Semiconductors are a good sector to watch to see if they develop strength and close above 51.00, above the resistance.

Utilities were strong, with investors moving their money into more defensive sectors for safety. I was looking for a short term pullback which they had, but they are not acting right. Momentum patterns continue to weaken, not a good sign. This needs to be watched. The monthly trendline from the 2009 lows has also broken to the downside, turning the long term trend down.

The bond market didn’t rally when the stock market was falling hard and fast. This could be a sign of potential trouble ahead for the bond market.

The S&P 500 (SPY) as well as Apple had death-cross sell signals, joining the Dow Jones Industrial Average (DJIA). (Death cross refers to the situation when price falls below a 50-day simple moving average, and crosses below a 200-day moving average.) On 09/02/15, the Russell 2000 (IWM) also generated a death cross signal.

Small caps (ETF:IWM) are not leading the advance when the market rises intraday. Watch how the small caps react on rally attempts. If the small caps lag, this would not be a healthy sign for the advance to continue.

Volume patterns on the New York Stock Exchange and the Nasdaq did get oversold as the market fell. Monitor what happens on up days. If volume is increasing, that would be favorable. If the volume is less, investors are selling the rally and most likely further gains would be contained.

Volatility (VIX, a measure of fear) spiked to over 53.29. This is a very high reading: earlier in the year we were below 15. The VIX pulled back to 24.49 on the reflex rally and is now trading at 23.45.

Intraday volatility is to be expected during the next few months. The quiet days that we had early in the year are gone. Daily swings of 2-3% could occur much more regularly.

What Do The Charts Say?

SPDR S&P 500 (SPY) Weekly ETF (Top) and MACD (Bottom)

bgchart1 090415 lgThe top portion of the chart shows the S&P 500 (SPY) falling sharply and quickly penetrating support at 204.00, declining to its downside objective (lower channel) of 182.00 discussed in the previous newsletter.

The uptrend from January 2013 clearly has been broken to the downside, changing the intermediate trend from positive to negative. Major resistance if the market moves higher than I expect is 207.00, the area where the S&P 500 broke down from.

After a big decline like we have had, it’s normal for a re-test of the lows to take place within 3-6 weeks, a much safer entry. If the lows are violated now a more serious decline is likely to occur. Downside objectives are 1700, followed by 1600.

The lower portion of the above chart is the technical indicator MACD, (a momentum indicator) clearly showing continued declining momentum as the market moved lower. MACD is falling, now below 0, oversold and where meaningful rallies develop. No turn up in MACD has taken place, so any buying now would be considered bottom fishing and could be dangerous.

SPDR S&P 500 (SPY) Monthly ETF (Top), and MACD (Bottom)bgchart2 090415 lgThe top part of the chart at right is the S&P 500 (SPY) clearly breaking the monthly uptrend that was intact since 2011. The S&P 500 is now confirming the earlier MACD sell (lower part of the chart), joining other sectors of the market. With the trend unfavorable for the longer term, it will be harder to make money from the long side and it is possible more downside will occur. Time will tell.

Just To Sum Up.

The month of September is historically a weak month.

The S&P 500 and many major averages are in the process of testing the lows of 08/24/15 trying to form a bottom after the poor month of August. The S&P 500 (SPY) has shifted from positive to negative for the intermediate and long term trend.

As of 09/02/15 the market in general has stopped falling and is trying to form a short-term bottom and move higher. With the intermediate and longer term trend unfavorable, I am expecting the market to need more time to build a base and form a safer bottom that can sustain an upwards trend for more than a few hours, days or weeks. Momentum indicators are not signaling a safe entry now. Many other sectors are also in downtrends, and our models are not favorable. The market is not out of the woods yet and is likely to test the 08/24/15 lows in 3-6 weeks. If the low in the S&P 500 (SPY) is violated (182.40) expect another leg down to take place that could accelerate much lower, 170 followed by 160.00.

It’s not too late to evaluate your portfolio and reduce your exposure if you haven’t already, until the intermediate and long term momentum patterns are more favorable. Caution is advised.

I would love to hear from you! Any thoughts, questions comments, feedback. Please call me at 1-844-8296229 or email at bgortler@signalert.com.

*******Article in Systems and Forecasts September 4,  2015

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This is a hypothetical result and is not meant to represent the actual performance of any particular investment. Future results cannot be guaranteed.

Although the information is made with a sincere effort for accuracy, it is not guaranteed either in any form that the above information is a statement of fact, of opinion, or the result of following any of the recommendations made herein. Readers are encouraged to meet with their own advisors to consider the suitability of investments discussed above for their own particular situations and for determination of their own risk levels.

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We build relationships all the time, whether it’s in business, through your personal life or within the happenings that occur day to day. There is no escape, you are surrounded by people. The relationships you create with family, friends, and associates shape the life you lead. Sometimes when the unexpected happens, the perception of what you thought you believed changes and forever impacts your life experiences. These unexpected surprises are miracles in action and are worth acknowledging at every turn.

It may not always seem like it but miracles really do happen all around us. This is why you must never give up on your hopes and dreams. You must learn to believe they are truly possible if you plan to have all that you wish for or desire. One of the biggest miracles in my life that happened unexpectedly was when my mother-in-law, who I love dearly, became paralyzed. All the muscles in her body collapsed and she was only able to move her hands from side to side, speak, and nothing more. Most doctors gave up on her, but she continued to fight for survival. Her mindset, attitude and belief became the foundation that helped her get through the challenges and enabled her to recover. Her recovery allowed all of us to have many more celebrations together as she is still enjoying her life. What an incredible gift and an extraordinary miracle!

Aruba 2015 Neil bonnie Amanda beachTaking time with the family to go on vacation is a priority of mine. Everyone needs some fun time to get away from the stresses of life. In late July, I was able to enjoy a special time with my family in Aruba, my home away from home. Aruba is our place to, relax, refresh, and experience tranquility at its best. This particular trip I noticed that I was a bit distracted in my efforts to unwind, and it took an extra amount of effort and time for me to relax and let go. This served as a warning sign for me to always be thankful for the miracles that appear or have appeared in our lives. Life moves so fast and every day routines can easily become the backdrop of our lives but it’s our job to never forget to take notice and show gratitude for the miracles that surround us. We must stop and acknowledge these gifts (big & small alike) for there are miracles that unfold before us each and every day.

Social media can bring so much joy into your life by helping to solidify established relationships and by bringing you new friends from all over the world. I know this first hand and it has changed my life for the better. Even with all the fun, there are times you find out things that are not pleasurable and are downright shocking. Little did I know an unexpected event would occur one week before my vacation that would test my belief of miracles.

Here’s what happened. I went on Facebook on July 11, 2015 and saw a post from my coaches’ daughter that said – traveling to New Orleans, “Please pray for my mom”. My mouth dropped, I became speechless, I was stunned. Though I didn’t react or panic (this never helps a situation), I remember saying “Oh My God” with a feeling inside of me saying something was very wrong. I flashed back to key words of the conversation from the day before, “don’t sweat the small stuff”. Wow, I was not expecting a real time lesson that would be as traumatic as in her near death experience.

I have a strong bond with my coach, Sheri Kaye Hoff, and quickly became emotional but soon reminded myself what I learned in coaching over the years, emotions are your friends, and it’s OK to feel them so don’t stuff them inside. I had also recently learned from my friend that people reach out on Facebook for support, a lesson that was divinely timed.

The texts, e mails, and FB messages helped me to uncover more of what was going on. Tears started to come down my face, I was scared and for a moment I thought I wouldn’t be able to speak with her again. I let out some of my emotions turning to my friends on Facebook, who supported me in the time when I needed it most. I finally managed to find an inner peace; I regrouped, had faith, and started thinking positive healing thoughts that all is well.

Sheri and Bonnie pic 2 eventI was a little distracted, not able to concentrate or focus on anything very well but I would follow on FB what was going on waiting and looking for when an update would become available. Indeed there were many. Prayers were being said from so many friends and family. I could feel she was fighting for her survival. I would find out she was in ICU on a ventilator and not breathing on her own. More emotions came out, tears, and prayers. Then the miracle happened I found out she could breathe on her own and I knew she would do everything in her power to make it through. I still remember when she called and I answered the phone, so happy to hear her voice. All the tools that she has shared over the years, she used to heal her heart. Her mission in life is not complete, so much more for her to do.

Remember that life is a gift and it’s time to open your heart. You may come across the darkest of times but have faith in knowing that miracles do happen. Just believe!

When I went on vacation a week later I knew she had survived, but more healing needed to take place for a complete recovery of her heart. I continued to think positive and while away I opened my heart to write this poem.

From My Heart

Surprised and alarmed to see
Words that said please pray for me

My heart raced as I felt fright
In disbelief I said let there be light

Prayer was asked for
Time to close the door
I have learned not to react but to respond
Take a breadth, don’t panic and feel the bond

Looking for a new post on the internet
Be patient and there would be good news to get

I reached out for support
A blessing, a gift including a lesson was taught

In the moment my thoughts were a blur
I prayed God please take care of her

Hearing how her heart stopped beating
Praying for an opportunity there would be another meeting

Time passed by and tears would fly
I prayed he would watch over her with his eye

Good thoughts past through my mind
With an open heart be kind

Her will to live would overrule
God would protect the beautiful jewel

Go within you can handle the tough
Remember don’t sweat the small stuff

The best is ahead, your mission to do
Gratitude and appreciation with unconditional love for you.

The magic of miracles is all around us. Even though challenges are part of everyday life it is always helpful to remember that how you perceive and deal with them is all within your power. You are important and matter. Give yourself permission to enjoy life, do what your heart desires, and become grateful for ALL the miracles that surround you. It just takes open eyes and an appreciative heart to see them. Do what you think is fun, keep a positive mindset, and don’t sweat the small stuff! Life is a gift, so be grateful and believe that miracles really do happen!

Read the inspiring story of Sheri Kaye Hoff’s near death experience by visiting http://wp.me/pOYcg-F5

Do you have a miracle story?
If so, share via email at Bonnie@BonnieGortler.com.
It will be great to hear about your miracle in action!

Wishing you health, wealth and happiness,
Bonnie
Wealth and Well-Being Coach

Schedule your ‘Inspired Wealth and Well-Being

Free 30 minute Discovery Session”

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A possible breakout to the upside in US equity averages failed once again in the past week. However, the S&P 500 has almost recovered from its recent losses with a potential key reversal day to the upside on 05/27/15. The technology sector, represented by PowerShares QQQ (QQQ, tracking the Nasdaq 100 Index) is acting better. The semiconductors (see chart of SOXX below) are strong, showing leadership, already penetrating January’s high which is bullish for the technology sector and good for the overall health of the stock market.

SMH 052915 Newsletter

Power Shares QQQ Daily Price and Trend Channels (Top), and 12-26-9 Daily MACD (Bottom)

0527qqq dailyThe top part of the chart is the Power  Shares QQQ Trust; an exchange traded fund (ETF) based on the Nasdaq 100 Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. As of 5/26/15, Apple, (AAPL) is the largest holding comprising 14.61% and Microsoft Corp (MSFT) is the second largest holding at 7.40%. Both stocks peaked in late April, like the QQQ, but their present chart patterns appear favorable supporting higher prices for the QQQ. The top portion of the chart above shows how the QQQ has been unable to get through the top of the short term daily channel. Each time it was near, prices turned down. A closing price above for two days would be considered a breakout. Resistance now is at 112.50, with the uptrend since October 2014 (pink line) in effect. First support is at 107.50. A break below would suggest prices could quickly fall to the lower daily channel at 105.00 followed by 97.00. The lower portion of the daily QQQ chart is MACD, a momentum oscillator. When it is above 0 and rising, it indicates increasing momentum. There is also a slight upside break in the downtrend from March (Pink line) that has positive short term implications.

As long as QQQ is above 107.50, look for higher prices. Power Shares QQQ Weekly Price and Trend Channels (Top), and RSI 14 (Bottom) 

052717 qqq weeklyThe top portion of the weekly QQQ chart (to the right) also shows how QQQ for the intermediate term has stopped rising when price is near or at the top of the channel. QQQ remains above its recent breakout to the upside (pink line). The top channel objective is 112.50, the same area of resistance as the daily chart. When the QQQ moves through the resistance level, the next objective is 124.00. The lower portion of the chart is the Relative Strength Index, (RSI 14), a momentum indicator developed by Welles Wilder. It would be bullish, confirming higher prices ahead if the downtrend is broken. It is now very close to breaking the trend line from July 2014. If broken, expect further strength that could be could be sharp and fast, potentially triggering any buy stops that investors could have in place. Watch the indicator to see how high the reading gets before it turns down. If the RSI could get to 70 or above it should buy more time for the bull market environment: A secondary test of the price highs in QQQ would most likely happen before a major top would be in place.

Monthly QQQ/SPY Ratio (Top) RSI of QQQ/SPY Ratio (Bottom) 

052715 qqqspyrel strengthThe top part of the chart is the monthly ratio QQQ/SPY ratio. A rising line means the Nasdaq 100 is stronger and if falling, the S&P 500 is stronger. With the line continuing to rise, this confirms the long term strength in the QQQ vs. the S&P, which normally bodes well for the stock market. The monthly ratio is at its highs and rising is additional evidence that the bull market in technology remains in effect. This bodes well for the QQQ to suggest that the QQQ will break through the top of the daily and weekly channel. The lower chart above is the RSI of the QQQ/SPY Ratio shows a favorable uptrend from early 2013 in effect. The RSI of the QQQ/SPY ratio is trading near its highs at 70.80. With the rally in technology since March, the small double top pattern that was forming has been negated, alleviating any sign of potential danger at this time.

Just To Sum Up: The market has been unable to have a significant breakout to the upside. The technology sector is close to breaking through the top of the short and intermediate term channels. Momentum patterns in the technology sector are favorable and could be the catalyst for an upside breakout. As long as QQQ is above 107.50, look for higher prices in the stock market. If QQQ penetrates 112.50 on a closing basis for two days it would be considered a breakout and the next leg of the advance could begin. I would love to hear from you! Any thoughts, questions comments, feedback; please call me at 1-844-829-6229 or email at bonniegortler@signalert.com

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February was been the best month since October 2011 for the S&P 500 and also the best month for the Nasdaq Composite since January 2012. Similarly, US equity ETFs recently touched new highs before pulling back starting on March 6. The Nasdaq closed above 5000 for the first time in almost 15 years, generating optimism by investors. Celebrating the market making new highs is great for your emotions because it gives you a feeling of success, but a wise investor will not get emotional and will instead have a plan that includes flexibility with his/her money to make changes in their investments when the trend changes. Some sectors are extended, such as technology and health care, near their top of their channel after large gains, while other sectors are at key support areas, losing momentum and giving warnings to keep a close eye on your investments.

If you have been invested in oil, emerging markets, gold, silver which have been weaker sectors, then you might have a queasy stomach, with some fear that the market might be ready for a large correction. These areas are oversold (in a bottom area) for the long term, potential value exists because of their declines, but so far money doesn’t appear to be moving into these sectors. When a rally does take place the advance seems to fail quickly frustrating investors and no reward to speak of. On up days, there has been no significant volume so prices have stalled with investors selling into the rise. For a sign that these areas have bottomed, look for prices to rise with volume increasing on positive days, to signify that the trend has changed from down to up.

What Are The Charts Saying Now?-Utilities Select Sector SPDR ETF Weekly (XLU)

xluweeklycycle

The top chart is the weekly Utilities Select Sector SPDR (XLU) that is in a uptrend from December 2012 with a 50 week moving average. The Utilities Index (XLU) for the most part provides companies that produce, generate, transmit or distribute electricity or natural gas. The top holdings as of 03/03/15 are Duke Energy Corp (DUK) 9.15%; NextEra Energy (NEE) 8.05 %; Dominion Resources Inc. (D) 7.49%; Southern Co. (SO) 7.35%; Exelon (EXC) 5.13%; and American Power (AEP) 5.04%.

 030615 xllu ris

XLU has quickly fallen from 48.76 on January 28th to a low of 44.05, (at the time of this writing) down 9.66% with  the fall stopping just above the 50 day moving average which is acting as support at 44.38. There is a possibility the decline could be coming to an end soon because the XLU could have the support of being at a cycle low.

Notice the vertical lines, the bottom late in 2012 and early January 2014. If the Fed doesn’t raise interest rates in June and waits until later in the year or next year there is a good chance the XLU will turn up from here. The weekly downtrend would be broken to the upside if the XLU can close above 45.00. I would expect a rally to 47.OO and then stall, some base building with investors
looking for more clues to when rates will actually be raised.

The lower portion of the chart is the technical indicator MACD which measures momentum. MACD made a new high with price, confirming the high. The rally was so strong MACD failed to give an advance warning before utilities fell by forming a negative divergence. Now there are two significant trend lines in MACD to watch that could give further evidence if the XLU is a buying opportunity or if the cycle will fail and further weakness will occur. The uptrend from October 2013 remains in effect, but barely. The uptrend from 2012 looks like it will hold unless prices fall sharply.

Daily XLU/SPY Ratio (Top) MACD of XLU/SPY Ratio (Bottom)

The top part of the chart shows the Daily XLU/SPY relative strength ratio. Utilities are stronger when rising and weaker than the S&P 500 (SPY) when falling. XLU peaked in 01/29/15 and fell in February. The downtrend has been broken, which is another sign utilities could be near a bottom. In addition, the MACD of the XLU / SPY ratio (lower part of the fi gure) has flattened and started to rise from a very oversold position. Since this is a daily chart weakness in utilities would turn down the ratio down but with the potential cycle bottom discussed above, I am looking for prices to stabilize.

Just To Sum Up:

With the expectation of higher interest rates, investors moved out of utilities, bucking the upward trend of the US stock market in February. Technical indicators have worked off their overbought conditions and have moved into a more favorable position after the February decline in utilities, including a potential cyclical bottom that could be at hand supporting the sector. To confirm that utilities have potentially bottomed and represents a buying opportunity, look for XLU to close above 45.00. This would break the weekly downtrend and would be bullish for the overall stock market.

I invite you to share your insights by calling me at 1-844-829-6229 or Email me at bgortler@signalert.com with your questions or comments.

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