• Comments for August 23, 2023

     
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    On my August 8th comment, I had expected a bounce before further market weakness, but interest rates pushed higher, which put pressure on the whole market. Hence, the Yield based valuation method has now us down close to $3900. This means that in theory there is still room for the markets to fall more.





    The Mcclellan indicator also points to lower prices, while



    The Nasdaq and the S&P500 Future display negative divergences. This points to investors selling the current bounce.





    This is also what the 20DMF shows: the bounce attracts sellers.



    However, the NHNL indicator is not at extreme levels yet. This tells us that there is no real panic yet and hence that a market bottom is not yet forming.



    Below, I point two sectors that show positive divergences: XBI and the PM sector.





    Conclusions:

    More weakness is expected here.