📈 State of the Market

This is what you need to know.

State of the Stock Market

After a huge bounce day on news that tariffs on Mexico and Canada would be postponed, we had a mixed day yesterday with some signs that the market may need a rest.

Here are a couple signs that I’m seeing right now.

Market Breadth

We are starting to see market breadth come in a little bit over the last few days.

You can see in the chart above that we are starting to roll a little bit, which is something to pay attention to.

You especially want to see the percent of stocks above their 50-day moving average (S5FI) break back above the 50 level.

Bonds are Being Bought

We have seen aggressive buying of bonds since Trump’s inauguration.

We peaked near 4.9% and are now looking to break below 4.5%.

This tells us that inflation fears are cooling. We wouldn’t see such aggressive buying of bonds if investors were fearful of policy decisions leading to a return of inflation.

Breaking below 4.5% is key here.

Bitcoin Getting Heavy

We are starting to see potential signs of Bitcoin rolling over.

The negative RSI divergence is extremely clear for anyone to see.

For now we are holding in there but you need to be careful if we start testing/breaking the $90,500 level.

Also pay attention to anchored VWAP from election day, as that has been a source of support for Bitcoin as well.

There is a lot going on this week with key earnings and economic data, as well as headline risk from the current administration. For more on what you need to know, click here: