The S&P 500 Index is very close to our target level of 4000, which is where I am looking for a pause/pullback to occur.
As well, we saw a reversal in the Russell 2000 after reaching its MOB price target band at 2365. I believe there is potential for further weakness short term. No sign of a major top, however.
The MidCap (MDY) is overbought short-term. I am looking to add to weakness.
On a brighter note, the Nasdaq Composite reversed off the MOB band and has now rallied back above the lower end of its channel line and 50-day average. A positive development.
No change in the Dow Jones Transportation Average as the index remains in a favorable up-trend. I continue to like the airline group.
The relative chart of the Russell 1000 value to Growth reversed 1.5% shy of our price target and has broken below its uptrend. I suspect there is more weakness ahead.
The rally in the TLT was short lived after bouncing off our MFU-3 target. I thought there was a good chance of a stronger rally, which is typical at an MFU-3 level, but it failed. There is a measured target quite a bit lower from here, so our focus is on another leg lower.
Looking at sectors, the Energy ETF (XOP) got very close to our target of $93.50. I am taking profits on extended stocks and will wait to see what the pullback looks like before identifying a zone to add back.
Charts:
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