From yesterday, we have key breadth inflows across the board: Financials, Healthcare and Biotech, Technology, Materials, Mining and the Energy space.
Within Financials, Commercial and Regional banks received stronger flows than the Broker Dealers (IAI) which remain in short term bearish mode. Momentum buying was also apparent in the Oil Equipment and Service sectors versus the 'Integrated' names. We are looking at sector rotational quality, referenced by 'IntraS' vs 'CloseS' columns - referring to the signal type within the specific product (IntraS is an intraday momentum signal, 'CloseS' reflects an end of day change in direction). Whereby, the momentum trigger implies stronger product demand. As well, the short term signal, as described, must be evaluated within the context of the intermediate and longer term product/market trend. When all trading time periods are fully synchronized directionally, we can use the trade signal type as our timing mechanism. So, the types of signals we find within sector spaces relays micro perspective and/or mood relating to the sector. And collectively, we can develop a broad macro-based insight into the overall state of the US stock market by analyzing signal quality specific to each sector.
Similar momentum signals we generated within the Ag (MOO), Mining and Materials (XME, XHB), and Energy Equipment and Service issuers (OIH, XES) space.
By far, the leading market sector is in Healthcare and Biotech space (XBI, FBT, XLV, etc). These products have been in bullish mode for the longest duration as per the numerical value found in the column associated with the signal type (4.00, etc), and driven by momentum signals initiating short term trend in line with longer term trends.
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