Equities put in their worst week in months, leaving the S&P 500 (SPY) lower by -3.3% on the week. While the ‘right news’ could precipitate a violent upside reversal, in the absence of that I’d certainly expect lower lows ahead in the face of this strong downside momentum. Note in particular, how all but Technology and the ‘Safety Sectors’ have now broken their rising ten-month moving averages. Conversely, Treasuries (TLT) and Precious Metals (DBP) are now looking quite overbought on a very short-term basis.
NEVER INVESTMENT ADVICE