Broker/Dealer Index
The Broker/Dealer index has rallied to resistance on both an absolute and relative basis. But more progress is needed before this index can confirm the strength seen elsewhere in the stock market. On a relative basis, the Broker/Dealer has stopped making lower lows and is poised to make a higher high.
European Stocks
While the S&P 500 is closing in an all-time price high (on a total return basis it is already in record territory), the same cannot be said for the Euro STOXX 50 and European stocks. Both price and momentum trends remain a challenge for this index. While the rally off of the early 2016 lows as been impressive, the index has yet to even reclaim its 200-day average.
Health Care Sector
The Health Care sector has broken above its down-trend line on an an absolute basis, but the relative price gains have been more muted and breadth has not broken out. The sector remains near the bottom of the heap in our relative strength rankings.
Thanks for reading this week’s stock market outlook. Have a nice weekend.
Twitter: @WillieDelwiche
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
