Foreign ETFs denominated in US Dollars continue to outperform US ETFs reflecting the weak US Dollar since the beginning of this year. The dollar could be firming up, though.
The "canary" ETFs, Transports, Small Caps, Semiconductors, continue to perform reasonably well which is a good sign for the market overall.
Cyclical and rate-sensitive stocks continue to outperform which is bullish.
Overall, it appears to reflect a healthy stock market. But keep an eye on the US Dollar. If it starts to break down again, that could spell trouble for US stocks.
This is a bullish chart, but if you narrow the scope to start in 2015 it hasn't really trended higher by much. Even so, I am assuming a higher dollar until this uptrend line breaks.
The technical picture is starting to improve for Treasury Bonds again... a little maybe?
The Short-Term Trend
It is still a short-term downtrend, although I am struggling with how to define a short-term trend. Is it defined by the indexes or the breadth indicators?
This chart is mixed. The AD line is healthy. However, the UD is sagging and looks to be headed lower. So based on this chart, I would say that the trend is at best sideways. But I am still working on it.
Junk bonds didn't move much today, but small caps fell by a lot.
Strength in junk bonds is a good sign for the broader market.
I wouldn't get too concerned about small caps unless they break below the bottom of their current range.
The Leader List
The scores are improving for treasury bonds, but TLT isn't strong enough to appear on this list yet.
Materials were weak today, but recovered towards the close. Small caps were weak too, and have completely dropped off.
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