{"id":6113,"date":"2024-07-16T00:02:51","date_gmt":"2024-07-16T00:02:51","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/07\/16\/time-to-use-your-discretion-as-sector-helps-prop-up-equities\/"},"modified":"2024-07-16T00:02:51","modified_gmt":"2024-07-16T00:02:51","slug":"time-to-use-your-discretion-as-sector-helps-prop-up-equities","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/07\/16\/time-to-use-your-discretion-as-sector-helps-prop-up-equities\/","title":{"rendered":"TIME TO USE YOUR DISCRETION AS SECTOR HELPS PROP UP EQUITIES?"},"content":{"rendered":"
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Good morning and welcome to this week\u2019s Flight Path. It was another strong week for U.S. equities as we saw S&P hit new highs on a week of strong blue \u201cGo\u201d bars.\u00a0Treasury bond prices had a good weeks as well with a string of blue \u201cGo\u201d bars and the U.S. commodity index was able to remain in a \u201cGo\u201d trend although we did see some weakness with aqua bars as the week came to a close.\u00a0The dollar was the only asset this week that fell out of its \u201cGo\u201d trend.\u00a0We saw some uncertainty as price dropped and GoNoGo Trend painted a couple of amber \u201cGo Fish\u201d bars.<\/p>\n

$SPY Paints Countertrend Correction Icon at New Highs<\/h4>\n

Equity prices continued higher this week and GoNoGo Trend painted uninterrupted strong blue \u201cGo\u201d bars.\u00a0Late in the week we saw a Go Countertrend Correction Icon (red arrow) at the high indicating that price may struggle to go higher in the short term. When we look at the oscillator panel we can see that it fell out of overbought levels but has quickly returned showing sustained market enthusiasm.\u00a0We will watch to see if momentum wanes this week and will look for price to consolidate at these new higher levels.<\/p>\n<\/p>\n

Strong \u201cGo\u201d trend.\u00a0That is the reading from the weekly chart.\u00a0Another higher weekly close on a strong blue \u201cGo\u201d bar is what we are seeing here.\u00a0If we look at the oscillator panel we see that we are staying in overbought territory and so we do not see momentum falling off enough to trigger a countertrend correction icon (red arrow) on the price chart.<\/p>\n<\/p>\n

Treasury Rates in Strong \u201cNoGo\u201d Trend<\/strong><\/p>\n

This week confirmed the \u201cNoGo\u201d picture that had emerged.\u00a0\u00a0GoNoGo Trend painted a whole week of strong purple \u201cNoGo\u201d bars and price made a new lower low.\u00a0When we look to the oscillator panel we can see that GoNoGo Oscillator fell back through the zero line after a few bars in a GoNoGo Squeeze and is now in negative territory at a value of -2.\u00a0This tells us that momentum is resurgent in the direction of the \u201cNoGo\u201d trend and so we see a NoGo Trend Continuation Icon (red circle) on the price chart.<\/p>\n<\/p>\n

Dollar Displays Uncertainty<\/h4>\n

Last week GoNoGo Trend informed us that the \u201cGo\u201d trend was weak after it fell away from its most recent high and painted a number of weaker aqua \u201cGo\u201d bars.\u00a0This week we saw price fall further, gapping lower mid week.\u00a0This led to GoNoGo Trend painting a couple of amber \u201cGo Fish\u201d bars telling us that not enough of the GoNoGo criteria are being met to determine a trend in either direction. If we look to the GoNoGo Oscillator for clues, we can see that it has failed at zero, and is dropping fast toward oversold territory.\u00a0There is negative momentum here.<\/p>\n<\/p>\n

The weekly chart still tells us that we are hanging on to the longer term \u201cGo\u201d trend.\u00a0After a destructive week, we are trading close to levels that could well suggest support.\u00a0As GoNoGo Oscillator falls toward the zero line, we will watch to see if it finds support at that level.\u00a0If it does, we will expect the \u201cGo\u201d trend to continue.<\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Good morning and welcome to this week\u2019s Flight Path. It was another strong week for U.S. equities as we saw S&P hit new highs on a week of strong blue \u201cGo\u201d bars.\u00a0Treasury bond prices had a good weeks as well with a string of blue \u201cGo\u201d bars and the U.S. commodity index was able to […]<\/p>\n","protected":false},"author":0,"featured_media":6114,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/6113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=6113"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/6113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/6114"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=6113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=6113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=6113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}