Breaking Out To The Upside

In a reversal from yesterday, the markets opened higher and never looked back with the S&P; 500 closing above 1,400 for the first time since January.

Financials provided leadership, as energy was knocked lower by a drop in oil prices. The dollar rose and the Commodity Index was pushed to its lowest level in 4 weeks. Gold dropped as well and has now come off its high in March by some 18%.

Our Trend Tracking Indexes (TTIs) improved and are hugging their long-term trend lines as follows:

Domestic TTI: +1.69%
International TTI: -1.69%

Today’s strong up move in the market pushed our domestic TTI now above the upper range of the neutral zone (+1.50%). If this level holds for a couple of trading days, that will then constitute a new Buy signal. Stay tuned as tomorrows payroll report will certainly have an effect on market direction.

If a Buy signal materializes over the next few days, I will provide more details in a special blog post.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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