The Cumulative Tick is also showing weakness.
We can see that negativity was present in both sections of the S&P500.
The only slightly positive sectors were biotech and Gold/Silver miners.
We can see below that higher expected rates force investors to sell the 10Y Treasuries.
On the other hand, the Fed has increased its RR operations, which should eventually keep the 10Y rates from rising too fast.
We can see below that equities are still slightly undervalued compared to fixed income instruments, but higher rates have forced both the Red and the Green dotted lines down. This means that value wise, the S&P500 is forced into lower highs and lower lows.
The NHNL indicator is now much closer to the lows of May/June.
Conclusions:
Technically, we are now closer to a low than at anytime in the past few weeks.
October to December is usually a good period for equities.
Below is a list of trade ideas. I am interested in those in Yellow.
I already have long positions in BCRX, PBR, SCCO, FCX and WPM. the last three is slightly negative now.
