Its time again for the Swiss team’s regular weekly cross asset report.
We have continued price strength in the SP500 index and today’s price action has produced a close above the 1883 level producing a new all time record high for the index.
The team cover the eventuality by sighting the following:
“A break of 1883 would pave the way for an overshoot towards 1900”. But nonetheless they forecast no continuation of the new higher high price momentum.
US Sector wise I’ll leave it to the team but they pick up the energy breakout that we have commented on in the forum. The technical breadth issues remain as does divergence on momentum and other price indicators.
I would add here that whilst sp500 new 52 week highs remains very weak, even on today’s close the sp500 stocks above their 200 dma is better and shows confirmation of the higher high! But I also want to add here that the sp500 is alone in this shred of technical confirmation. If I look at the DOW, Nasdaq, Nas100, Russell2000 and NYSE Composite I see also non confirmation across the board from 52 week highs as well as stocks above 200 dma within these indexes. The NYSE composite achieved a higher high today but the divergence was immense again and at a lower level than the prior high achieved. Ie weakness upon weakness as price breaks out.
The Japan sector comments are well placed and their is bullish divergence on various sectors which is constructive for the sectors concerned and the index. The usdjpy is key. If the 104 level can breached the Nikkie will see buyers.The issue re Japan is whether the entry long is now or post a near term dip.
The rest of the detail I’ll leave to the report here:
All the best
Rich