Weekly Stock Market Outlook: Can Bulls Break Out Of The Range?

Broker/Dealer Index

Another thing to keep an eye on would be the performance of the broker/dealer index. The XBD is testing downtrends on both an absolute and relative basis. If these resistance levels yield and broker/dealers can continue to rally that too could indicate a breakout of the consolidation phase the S&P 500 has been in for the past year-plus.

xbd broker dealer index chart technical analysis may 27

Treasury Yields

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We are also watching bond yields. Nothing much has happened yet in terms of upside moves, although down-trends for the 5-year and 10-year T-Note yields are being tested. Also, while not making meaningful upside progress, downside has been more limited. Yields across the curve have been making higher lows. With optimism in bonds still elevated, the crowd seems to be betting that yields cannot continue to move higher.

us treasury yields 5 10 20 year chart analysis may 27

S&P Information Technology Sector

The Technology sector continues to rebound from the big decline in relative strength seen a month ago. With breadth still strong and momentum expanding, the sector could be poised to test the absolute and relative price highs from March.

s&p information technology sector chart analysis indicators_may 27

Thanks for reading.

 

Twitter:  @WillieDelwiche

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.