The SP500 found a brief respite at the 200-day EMA to close the week. However, it failed to close above the August ’22 high.
Continuing weakness seems likely, as this rally only affected breadth in the short term. Overall, weakness remains in the underlying sectors of the SP500.
This weakness in breadth is seen in only three sectors posting gains for the weak.
Short-term breadth across the SP indexes failed to clear 75%. Breadth on the longer time frames remained weak under 50%.
Major highlights for next week include the monthly CPI report. Last month's report saw inflation ticking higher on a year-over-year basis.
For my trading heading into this week, I will keep positions small and pay extra attention to signals that advise against taking long positions.
Hope everyone has a great weekend!