Weekend Market Review, 9.15.19: Upside Equity “Melt-Up” Now More Likely.

The US and Global equity markets continued their respective rallies last week, with small caps sharply outperforming large cap names. This rally was lead by regional banks, industrials, commodities, and real estate; while longer-term interest rates rallied on the back of more bullish expectations and volatility broke down. This is not what you typically find in a bear market.

Below are some highlights:

A momentum breakout is increasingly likely in the 5000 largest publicly traded companies in the US.
The S&P500 continues to show strength as momentum oscillators prepare to breakout.
Transportation sector has broken out!
The US Dollar seems to be on the verge of breaking down following a fake breakout. Would be extremely bullish for global commodities and Emerging Markets.
The Small Caps have broken out and will be the leaders in this next phase of equity bull market.
Regional Banks look like they’re ready to go.
Housing is ready to make a retest of its all-time highs.
Meanwhile, Volatility is on the ropes. A breakdown in momentum support at these levels could send the $VIX towards 9 area.

Cheers,

Dave

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