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Good morning CVELU, Despite all the bearish sentiment, the XJO somehow finished the week up 1%, exactly what I was expecting in last week's outlook!
Here's what I'm watching this week. - XJO: Sitting at key resistance around 8,800. A breakout targets 8,900. Above 8,600 remains bullish, but lose that level and things could turn bearish quickly.
- CRYPTO:
Sitting on major support. We need a bullish bounce here, otherwise another significant sell-off could follow.
- UTILITIES: Back in a weekly uptrend and looking bullish.
- TECHNOLOGY (XIJ): Fantastic Friday! Could pull back early before continuing towards 1,800. Still think it will be temporary before further downside.
- HEALTHCARE: Still in a healthy uptrend with 35,000ish remaining my target.
- ENERGY:
Could retrace towards 10,700 before finding support and continuing higher.
- CONSUMER STAPLES: My standout setup from last week delivered, rallying over 3.5%! Still looking strong.
- IRON ORE & FMG: Both sitting on major support. Watching closely for signs of buying returning.
- COPPER: Needs to hold $6.50 or risks a sharp sell-off.
- GOLD & SILVER:
Still pulling back, but miners continue showing relative strength. Even Friday night, both metals fell while their miners closed green. Encouraging signs of rotation.
- COAL: Newcastle futures testing $156. A breakout could confirm a major accumulation base has ended.
THE BIG PICTURE
As I mentioned in my News Corp column
a month ago, it's worth remaining defensive while we navigate this choppy kangaroo market. The sectors showing the most strength right now are energy, consumer staples, utilities and healthcare, which tells us something important. Money is rotating into defensive areas of the market.
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