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fib_1618

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Because of this, let's continue to trade on the friendly path of least resistance until we start to see evidence to the contrary, but at the same time, it wouldn't be too surprising to see a bear pop out from behind a tree early in the week just to keep the majority guessing as to whether this same road is safe enough to travel.

It turned out to be a ho-hum kind of week for equity prices as the major market indices closed up by an average of only +.26% from the previous Friday close, with the S&P 600 Small Cap index providing the most strength with a gain of nearly +1%. For the month of May itself, the U.S. equity markets were up by an average gain of +1.49% and making the "sell in May and go away" crowd feeling a bit uneasy.

Looking at this past week's breadth charts array and we see that all of our NYSE money flow lines finished the week at new all time highs with only the NYSE Common Only advance/decline line still some 3428 net advancing issues from making it a clean sweep. Looking further down the line and we see that the Junk Bond advance/decline line also moved to new recovery highs on Friday with both the Precious Metals and XAU advance/decline lines seeing new recovery highs of their own. Taken together, this continues to promise us that we will see higher equity prices in the not too distant future as the liquidity pool remains more than ample to cushion any bearish ambushes for, what should be, the next several weeks.

Looking internationally and we see that there was very little in the way of substantive changes from last week's review with the exception of the CAC and DAX advance/decline lines which closed weaker on Friday on the back of the dismal jobs data here in the states, but prior to the firming that took place here in the United States for the rest of the day. With the trend in global money flow still supporting bottoms above bottoms in their intermediate term structures, the expectation for next week is for a continued similarity in cadence to that of the momentum of the U.S. markets.

So with the BETS finally making it to our first weekly BUY signal since January of 2014 with a reading of +70, underlying market conditions remain buoyant enough to where the month of June should be a positive one for equities overall as we go into the July 4th holiday weekend. How far this rally might extend after that will depend greatly on how much additional thrust we receive in breadth as we go into this month's quarterly futures and options expiration period which is due on June 17th and, more importantly, if volume plurality continues to expand in tandem. But for now, there are no changes to our ongoing outlook of taking the friendly path of least resistance as far as it will take us.

Have a great trading week!

US Equity Markets:

[breadthspx060316]


[breadthdjia060316]

[breadthspec060316]

[breadthpre060316]

US Interest Rates:

[breadthtnx060316]

[breadthig060316]

[breadthjunk060316]

US Real Estate:

[breadthreit060316]

Precious Metals:

[breadthpm060316]

[breadthxau060316]

Australia:

[breadthaus060316]

England:

[breadthftse060316]

France:

[breadthcac060316]

Germany:

[breadthdax060316]

India:

[breadthbse060316]

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