Weekly Chart Review

Bend...But Don't Break.

Last week, I titled the newsletter, “Down…But Not Out” which felt appropriate at the time. However, this week, I’ve moved to “Bend…But Don’t Break” as last week continued to move in the wrong direction.

Monday and Tuesday were largely a non-event as everyone awaited CPI (Wednesday) and PPI (Thursday). The market clearly did not like the “hotter-than-expected” CPI print on Wednesday but tried to rally back on Thursday when PPI came in a bit “milder-than-expected”. However, Friday was ugly as the market gapped lower at the open and never looked back for the remainder of the day.

Where does this leave us?

You can see from the image below that the “week-over-week” changes were almost exclusively “Bearish”.

Notice that 77% of the ETFs we track are now “Bearish” on the Daily time frame. This includes a majority of the US Treasury and Fixed Income products we follow as well.

If we break it down by category, here’s what we find: