Risk-Reward Market Report
Smart Money Index
Liquidity Index:
A) Short-term Liquidity: Bullish Zone with an expanding money flow... Short-Term Price Support (daily price support of ~100 day EMA ... 20/50 EMA... ~5-10% pullbacks)
B) Intermediate-term Liquidity: Bullish Zone with expanding money flows... Intermediate-Term Price Support (21/144 EMA... ~10-19% corrections) As a long-term investor, this the more dominant trend that we want to focus on.
A uptrend in prices with a downtrend in the Liquidity Flow suggests underlying selling pressure (distribution) that could foreshadow a bearish reversal on the price chart. In bull markets when Flow is in a Bullish Zone but the trend is bearish, often may indicate consolidation of prices within a range bound area (trendless). In a bull market the bulls will have the advantage. (but not a given) A downtrend in prices with a uptrend in the Liquidity Flow indicate underlying buying pressure (accumulation) that could foreshadow a bullish reversal in prices. This data series shows an often overlooked aspect of the market and a useful tool in our perspective of the longer-term market progression.
Short-term Directional Trend: ... (supports ~ daily price above the 50day ema or~ 5/21 EMA) This is an important 1st defensive support area. The 100 day is usually the 2nd important support area. Funny that these 2 correlate fairly close to Fibonacci support.
- The Internal Momentum trended up from the warning zone then move lower again on Fridays pullback
- Internal Flow has again turned south
- H-L short-term momentum: short-term bullish zone
H-L Index: Intermediate to Long-term Indicator:
Breadth Momentum:
- Short-term: 4 of 4 momentum indicators are bullish but have turned negative
- Short-term overbought/oversold: dropped out from overbought to neutral on Friday...
- Short-term breadth trend is above >bullish levels...
- Sector Momentum: went from 4 to 5 bullish of the 10 sectors. Small caps & tech are bearish
- 10 & 20 day ema trend-lines are bullish
Breadth Trend: Intermediate trend is in the bull zone ...
Fear Indicator: ... Dropped down below 0.
- Selling pressure is low.
- New Lows don't indicate any real panic, still below 50 which is good sign...
S&P 500 Short-Term Price Action: Short-term trend indicator is still bullish. Internal negative flow was quite high for Friday. Overall still short-term bullish we advise neutral/caution. The short-term flows being bearish. Bears have had the upper hand lately so beware. Better to wait till Tech has bottomed. Hourly chart shows oversold do we could get a bounce. Bullish action and limited follow through & throw-back down to previous zone. Tech led lower again. More of the market topping chatter. Profit taking & reversion back into selling tech & small caps into strength at end of week. Should see 1920 but very hard resistance levels, may not be easy. Price stuck in the 1840 to the 1883 area.... Breakout target from this area of around the 1920 or 1795 zones.
Market Outlook: Liquidity flows and trends support a intermediate to long-term continuation of this bull market. We see the market for the next few months struggling more than it has before in reaching new highs. StockCharts list