Tuesday, November 29, 2016

M11 Likes XLU and TLT...11.29.16

Below is the current M11 market outlook for tomorrow (Wednesday).  We're seeing some stalling in market momentum with some genuine concerns about the deterioration of the A/D line.  Some other cracks are developing in the Trump rally (see today's note from Schwab options desk below).
Eyes should be focused on tomorrow thru end of week. If the markets falter here then a pullback is likely the next move coupled with a rotation from a momentum to a mean reversion paradigm.