The market rally last week was very narrow, driven mainly by large gains in communication services stocks like Meta. Many technical indicators are showing negative divergences. The broader market struggled. Erin reviews all of the sectors under the hood and then takes your symbol requests.
– Communication services and technology sectors look strongest, while materials, energy, and real estate look weakest. Industrials were identified as a sector to watch this week.
– Treasury yields bounced last week but the yield curve remains inverted, which can be a sign of economic weakness.
– Specific stocks discussed included PHR (buy opportunity on pullback), LDS (lined up technically but wait for better entry), and CRWD (hold with tight stop).
– The presenters have a bearish short-term outlook on the market and expect prices to move lower this week. Defensive sectors may outperform if the market declines.
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About the author:
Erin Swenlin is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master’s degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor’s degree in Mathematics from the University of Southern California.