The Dow Industrials, Transports and the S&P are range bound with the NASDAQ in a bullish breakout.
The “Syrian Conflict pullback” is over and the market is back in bullish mode, particularly the NASDAQ which has just given a bullish breakout signal.
For the third time the 1480’ish level on the Dow Transports has held. With this support holding, the bull trend is back in business on the Industrials the Transports and the S&P. However, they are range bound.
Within this apparent overall strength however there is much technical weakness about when you start to drill down a bit into specific stocks, particularly consumer staples. This development is causing me to worry somewhat and indicates that all is not completely “rosy” in the economic fundamental garden.
For example of the 10 top holding in the bell-weather consumer staples ETF: XPL, 5 are trading at or below their 100 DMA (PG, PEP, CVS, CL and MO) and another 3 are trading at or below their 200 DMA (KO, PM and WMT). Apparently this technical weakness is due to bad guidance moving forward which is not a good omen for the health of the overall world economy. This may also explain why so many companies, in the broader market, are trading below recent highs. Thus caution is warranted.
Full PDF doc Here: Wealthbuilder Market Brief September 10th
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