Weekend Market Review, 9.1.2019: Green Shoots!
WOW! Last week the market reversed in way nobody could have expected. Whereas just last weekend charts appeared to be on the verge of major breakdown, this week’s positive reversal may have just have lit the spark of a new breakout that could take the markets to new highs!
As you’ll see below, most equity indices bounced off critical levels of price and momentum support, many closing the week above their 13 and 26-week moving averages. From housing, technology, transportation to banking and credit, equities closed the week and month in very impressive fashion. While by no means are the markets out of the woods, last week’s price action reduced downside risk (largely due to selling by algorithms) considerably. I believe the upside momentum is currently far higher (i.e. 75%) than than the downside risk (25%).
Below are some highlights: