After #tariff announcements for major #TradingPartners, stocks saw significant selling, with most sectors and 80% of #SP1500 subindustries⬇️. However, President Trump’s 30-day extensions & strong Q4 earnings spurred a relief rally mid-week.
Only 13% of the 155 sub-industries in the #SP1500 ended the wk above their 10wk moving avg, while 47% were above their 40wk avg. Just 10% were above both. Since many are close to #oversold levels, a #bounce back may occur, but it might be #short #lived.
.@LowryResearch indicated that many core indicators reached strong levels by end of Nov, supporting the long-term #health of the current #BullMarket. But, there has been a⬇️in strength in Dec w/the % of #SP1500 sub-industries trading above their 50 & 200 day moving avgs⬇️frm Nov.
In addition, 70% of the 155 sub-industries in the #SP1500 ⬆️in the week. Finally, the #SP500 notched its 39th all-time⬆️of the year, recovering all that was lost during the 8.5% pullback from July 16 through August 5, typically implying further gains ahead.
All sizes, styles, & 9 of 11 sectors saw price ⬇️ led by #communicationservices #consumerdiscretionary #informationtechnology. June’s benign #PCE reading calmed the mrkt & on 7/26, all sizes, styles, & sectors, along with 92% of #SP1500 sub-industries, experienced price jumps.
A handful of #WallStreet sentiment #indicators recently signaled growing frothiness - AAII member survey shows unusually high bullishness, #CNN #FearGreedIndicator indicates extreme greed & #SP1500 sub-industries trading above 50- & 200-day averages hint at an overbought market.
