Tag Archives for " kbe "

State of the Markets: This Bull Is Strong

I mentioned last week that we are still stuck in high-level range and to me, that means we stick with a bullish bias until that lower part of the range breaks. Pulling back the zoom a little bit, let’s check the markets on a larger time frame and via sectors. The S&P 500 (via SPY) is hovering above the old breakout zone and is well above the intermediate trend line.  Still a bullish bias in my view.  Banks (KBE)- broke their uptrend and have been going sideways to down since.  This is the most concerning thing that I have seen.  I prefer them to lead, so this divergence could be a harbinger of things to come, but nothing yet. Retail (XRT) – broke its recent down trend, then checked back into it from above.  A good sign and a clear positive trend change.  Bullish here. Transports (XTN) – They were stuck in a downward channel, but broke through to the upside and have consolidated there for a while.  Bullish again. The bull still seems strong here, and I don’t see the need to play for the downside until we break the lower end of this range.   BP