The underlying strength of the market is weakening. While the intermediate and long term bullish trend remain in tact, we're in the midst of a short term bearish correction. The Bull:Bear Power Gauge ratio is near it's low of the past month and the number of sectors expected to outperform the S&P is narrowing. Cyclical stocks in tech and industrials, along with financials (thanks to rising interest rates) are poised for outperformance. Healthcare remains strongs, while discretionary is pulling back. If the market bounces, that's where we should find strength for a Santa Claus rally.
The ratio dropped to its lowest level since 11/8. 126 stocks bullish rated stocks cmpared to 93 bearish stocks. The bull:bear ratio of 1.35 keeps us in bullish, though approaching neutral, territory.
Sectors w/Best Potential to Outperform: Tech, Healthcare & Industrials and Financials. Breadth of Sector Strength Thins.
| The Power Gauge Bull Bear Radio is applied to each major ETF, then ranked on a relative basis. In theory, ETF's ranked higher than the SPY (The ETF that tracks the S&P 500) have potential to outpeform the market over the next 3 - 6 months. Search in for Industry Group strength in these Sectors and for the Bullish to Very Bullish rated stocks. |  |
Market Direction
Long Term Weekly Time Frame: Bullish
Daily Time Frame: Bullish
Hourly Time Frame: Bearish
RSS Feed