Tuesday, June 4, 2013

X Sectors All Downslope..6.4.13

Monday's pop looked like a turnaround but today's action has currently erased almost all of yesterday's gains.
Patience is the best advice for now until it becomes clearer if this is a short term or longer term correction.

All the X sectors ETFs are downslope. In most cases the P6 has been in that mode for over a week...in the case of XLU the roll over occurred a month ago. 
There are currently no bottoming patterns (hairy bottoms..discussed in previous posts) so cash is the safest place to be right now.

We're still waiting for a resolution of the bond/equity skew...at the present they are displaying correlated momentum.  When (and if) that changes and bonds begin to move divergent to equities then we may expect a more technically reliable investment milieu.  That's not the current situation.