The feverish commentary around the Fed and ‘Brexit’ was far more dramatic than the accompanying price action this week as the market again appears to be traversing a modest consolidation within an intermediate uptrend.
The 10-day view (30-min bars) of the S&P shows the decline of the last two weeks. Wednesday’s post-Fed decline into the close looked climactic in nature and more or less marked the low for the week.
Looking at that move in the context of a daily chart, the S&P 500 toyed with its 50-day MA all week.
Turning to the weekly on the S&P, the worst that can be said is it’s at 4-week lows.
Of the major indices the NASDAQ was worst-hit with a 1.9% decline, closing below its 10 and 40-week MAs, but still above the most recent higher low of over a month ago.
The Russell also marked a 4-week low, but remains above its 10-week MA and retains its strong uptrend.
Breadth via the NYSE Cumulative Advance/Decline has weakened from the highs of over a week ago but still remains healthy overall (data as at 6/16).
Of the nine S&P Sector SPDRs, the leading pair remain Utilities ($XLU) and Consumer Staples (XLP), followed by Materials ($XLB) and Energy ($XLE).
Then comes Industrials ($XLI), Technology ($XLK), and Healthcare ($XLV) which all closed below their 50-day.
They’re followed by Consumer Discretionary ($XLY) which is hovering just above its 200-day, and lastly by Financials ($XLF) which broke below its 200-day to finish at its lowest mark for over two months.
Alpha Capture Portfolio
Our portfolio fell -1.0% this week vs -1.2% for the S&P 500, outperforming the index for a third straight week.
That takes it to -2.2% YTD vs +1.3% for the S&P.