We can also see below that the "Ratio of sectors in a buy wait mode" indicator is close to the level where bounces have occurred in the past 18 months. However, I believe that this move has the strength to push that signal above the 50% level.
This is because the NQ8 Active Boundaries signal is still below its 110 level.
The NQ 100 Futures Money Flow was still displaying some negativity on Friday. This could have been options expirations selling though.
Also, both QQQ and SPY still look rather negative.
On Friday, I bought XLE, which bounced higher from very oversold levels on bouncing oil prices. Oil, however, has displayed very wild moves and hence, I'll be out of the trade if XLE falls below the Low of Friday (61.8).
On the currency front, I am surprised at the US$ weakness. I was expecting a much stronger US$.
But it is true that the US$/Yen rate differential is weakening.
Note that 20Y Treasuries are being sold, indicating that the US$ might be moving higher soon.
I am also surprised to see gold so high. Probably US$ linked combined to the NK fear trade.
Note that gold miners were weak for days before the sell-off Friday. (Maybe also options expiration.)
Also note the weakness in copper. A trade war with China would be negative for copper.
Conclusions:
Investors seem to be selling UST ( and raising cash.) This cash could move this week into the NQ8, but I still would prefer that more fear selling occurs first.
