Checking in on the delta neutral weekly version of T6 using a top 1 sort (otherwise known as the Lazy Man approach) shows the relative performance..and dominance.. of SPY's recent run. Note the position of P6 and the RSQ...upslope and climbing. We now have bullish indicators on both the daily and weekly charts, setting up a scenario for another quick leg up...if earnings don't falter.
The file was last updated on July 8th and will be updated after the close on the 15th. Given SPY's run this past week we can expect the new momentum signals to be even stronger than those shown on these charts.
What can derail this momentum?
Some underlying economic factors are not as bullish as one might expect at first glance and we'll explore a few of those next week. The bad news..although the average new employee, either full or part time, may have a job, the odds are that the pay scale for that work is significantly less than 5 years ago. Most recent new jobs have been in the retail and hospitality sectors where unskilled workers dominant the work force. The good news...corporate profits are up as a result of reduced labor costs, contributing to the markets optimism.