Market Snapshot 05-10-2015

Use the following table for a quick measure of the markets over a variety of time-frames.

Click the image for a better view…

05-10-2015 Stock market Snapshot

The longer-term trends of both the SPY and IWM remain bearish. The number of Russell3000 stocks which are trading above their 200 day MA is also unchanged from last week (a miserable 31%).

What does this tell us?

In my opinion, it tells us that Friday’s intra-day bullish reversal is not a good enough reason alone (as some bloggers have suggested) to think that the bottom is in for the rest of the year.

More likely is that we’re beginning to identify the edges of the range which I referred to a few weeks ago.

For the time being, this range is between $118 and $107 for the IWM and between $200 and $186 for the SPY.

The most oversold ETF on our list this week is JDST. An RSI4 reading below 30 is often a short-term buy signal, but the negative volume profile does not support the likelihood of JDST staging a rally.

TLT (Bonds) continue to perform well (especially relative to equities).

The only other ETF to catch my eye this week is DBA (Agricultural).

Although commodities have had a torrid time of it this year, during the past month they have quietly began to outperform the equity markets.

Furthermore, the volume profile of DBA has recently changed from bearish to bullish.

The above has encouraged me to place a speculative Buy-Stop order at $21.03.

DBA

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