Back to rally mode for most of the major Indices – exceptions being the small cap Russell 2000, commodities, and bonds. Bad news is good news again, which does not make me enthusiastic about this rally.
The following chart is based on the Z Option Market Analysis Tool – which determines if a market is trending by assigning a trending score from -3 to +3. This helps us keep our trading with the trend.
| Symbol | Description | Short Term Trend | Medium Term Trend |
| $DJI | Dow Jones Industrial Average | 3 | 3 |
| SPX | S&P 500 INDEX | 3 | 3 |
| RUT | RUSSELL 2000 INDEX | -3 | -3 |
| NDX | NASDAQ-100 INDEX INDEX | 3 | 3 |
| VIX | CBOE MARKET VOLATILITY INDEX | 1 | -1 |
| /ZB[Z5] | 30-Year U.S. Treasury Bond Futures,ETH | -1 | -3 |
| /ZN[Z5] | 10-Year U.S. Treasury Note Futures,ETH | -3 | -3 |
| /GC[Z5] | Gold Futures, ETH | -3 | -3 |
| /CL[F6] | Light Sweet Crude Oil Futures,ETH | -3 | -3 |
| /DX[Z5] | US Dollar Index Futures | 1 | 3 |
| $DJT | Dow Jones Transportation Average | 3 | 3 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | 3 | 3 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | 3 | 3 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | 3 | 3 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | 3 | 3 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -3 | -2 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | 2 | 3 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | 1 | 3 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | -1 | -3 |
| XLF | SELECT SECTOR SPDR TRUST FINANCIAL SELECT SECTOR FUND | 3 | 3 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
The Gap reports earning tonight – it will be interesting to see the results given the company’s current depressed valuation.
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