TIME TO USE YOUR DISCRETION AS SECTOR HELPS PROP UP EQUITIES? | GoNoGo Charts

Good morning and welcome to this week’s Flight Path. It was one other robust week for U.S. equities as we noticed S&P hit new highs on every week of robust blue “Go” bars. Treasury bond costs had weeks as effectively with a string of blue “Go” bars and the U.S. commodity index was in a position to stay in a “Go” pattern though we did see some weak point with aqua bars because the week got here to an in depth. The greenback was the one asset this week that fell out of its “Go” pattern. We noticed some uncertainty as worth dropped and GoNoGo Pattern painted a few amber “Go Fish” bars.

$SPY Paints Countertrend Correction Icon at New Highs

Fairness costs continued greater this week and GoNoGo Pattern painted uninterrupted robust blue “Go” bars. Late within the week we noticed a Go Countertrend Correction Icon (pink arrow) on the excessive indicating that worth could wrestle to go greater within the quick time period. Once we take a look at the oscillator panel we will see that it fell out of overbought ranges however has shortly returned displaying sustained market enthusiasm. We are going to watch to see if momentum wanes this week and can search for worth to consolidate at these new greater ranges.

Robust “Go” pattern. That’s the studying from the weekly chart. One other greater weekly shut on a robust blue “Go” bar is what we’re seeing right here. If we take a look at the oscillator panel we see that we’re staying in overbought territory and so we don’t see momentum falling off sufficient to set off a countertrend correction icon (pink arrow) on the value chart.

Treasury Charges in Robust “NoGo” Pattern

This week confirmed the “NoGo” image that had emerged.  GoNoGo Pattern painted a complete week of robust purple “NoGo” bars and worth made a brand new decrease low. Once we look to the oscillator panel we will see that GoNoGo Oscillator fell again by means of the zero line after a number of bars in a GoNoGo Squeeze and is now in unfavourable territory at a price of -2. This tells us that momentum is resurgent within the path of the “NoGo” pattern and so we see a NoGo Pattern Continuation Icon (pink circle) on the value chart.

Greenback Shows Uncertainty

Final week GoNoGo Pattern knowledgeable us that the “Go” pattern was weak after it fell away from its most up-to-date excessive and painted numerous weaker aqua “Go” bars. This week we noticed worth fall additional, gapping decrease mid week. This led to GoNoGo Pattern portray a few amber “Go Fish” bars telling us that not sufficient of the GoNoGo standards are being met to find out a pattern in both path. If we glance to the GoNoGo Oscillator for clues, we will see that it has failed at zero, and is dropping quick towards oversold territory. There may be unfavourable momentum right here.

The weekly chart nonetheless tells us that we’re hanging on to the long run “Go” pattern. After a damaging week, we’re buying and selling near ranges that might effectively recommend help. As GoNoGo Oscillator falls towards the zero line, we are going to watch to see if it finds help at that stage. If it does, we are going to count on the “Go” pattern to proceed.