New Bear Market Low For SPY but Futures Point to Another Turnaround Tuesday - Chaikin Analytics

New Bear Market Low For SPY but Futures Point to Another Turnaround Tuesday

US equities ended lower in Monday trading, though off the worst levels of the day. The S&P 500 is now 35% below the all-time high. Energy, Financials and Health Care underperformed Consumer Discretionary, Technology and Communication Services outperformed. Treasuries rallied. The dollar was weaker vs euro but stronger on the yen cross. Gold finished up 5.6%. WTI Crude ended up 3.2%. 

  • Outperformers: Consumer Disc. +0.35%, Communication Svcs. (0.39%), Tech (0.98%)
  • Underperformers: Energy (6.65%), Financials (6.11%), REITs (5.40%), Utilities (5.33%), Healthcare (4.97%), Materials (4.91%), Industrials (4.49%), Consumer Spls. (2.97%)

S&P futures up trading limit-up this morning after Asian markets were higher overnight European markets are also rallying. Treasuries are weaker across the curve. The dollar is weaker on the major crosses. Gold is up 3.5% after rising more than 5.5% on Monday. WTI Crude is up 6.3% after gaining just over 3.0% yesterday.  

Key Levels To Watch – SPY

The SPDR S&P 500 Trust (SPY) remains oversold and is extended to the downside from the declining long-term trend line. The 2018 lows have given way, opening the door to the $200 – $210 level if $235 is not quickly regained. 

Key Chart – Communication Services Select Sector SPDR Fund

All sectors have been sold off with the market, the key is to focus on the areas that have shown the best relative performance as these are likely leaders when the market builds a base. The Communication Services sector has seen its relative strength increase over the past week and Chaikin Money Flow is bullish.       

Pre-Market Movers

Advancers: ZG (31%), PK (16%), NRZ (15%), LYV (13%), CTAS (13%)

Decliners: JWN (3%), UTHR (1%), BAH (<1%), AGR (<1%)

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