"Building" Go Trends in US Equities | GoNoGo Charts (05.18)
GoNoGo Charts • 27m
Strong intraday moves in US Equity Indices this week have the S&P in reach of closing above resistance in strong “Go” Trend. As yields (TNX) drift higher in a new Go trend, the broad move has been tightly rangebound. The US Dollar index (UUP) has reversed its daily trend conditions strengthening to a Go. Inversely, Gold has pulled back into a NoGo trend condition short-term.
Drilling into the equity landscape, Alex & Tyler share a GoNoGo Sector Relmap to find the sectors outperforming the rising S&P500. Leadership is now squarely focused on growth equity sectors – XLK, XLY, XLC – information technology, consumer discretionary, and communications are in “Go’ trends relative to the S&P 500.
Within the discretionary sector, two industry subgroups are outperforming their sector (XLY). Broadline Retailers & Home Construction are two component groups with strong outperformance. Looking at Marks & Spencer (MAKSY) Alex and Tyler show how the Go trend is facing some momentum divergence, a threat to the Go trend, and a roll over on the relative trend. Within Homebuilders, Alex and Tyler highlight Pulte Group (PHM) with an exceptionally persistent Go trend.
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