Please find the Swiss team’s latest weekly technical market comments below.

It was becoming clear last week that the bear case had weakened. US markets have indeed made new record highs and market breadth has improved which the Swiss team are now acknowledging. Issues like the Russell2000 joining, as well as the semi conductors, extensions of breakouts in some of the key sectors as well as the high yield index, etc, have sustained this bull rally onward and lent much strength to her. Other issues the Swiss now pick up inc the new 52 week high breakout and the advances decliners breakout (Which turned bullish in the last few weeks).

The Swiss team are nonetheless sticking to their near term pull back scenario for US indexes. There seem to be three key planks to their near term call.

i) Vix divergence

ii) Divergence forming in the NYSE 50-Day Arms index

iii) Sentiment – (They sight this but i haven’t seen the evidence for this as AAII is certainly far from contrarian levels.

I’m out of time to comment on these issues now but lets pick these issues up in the forum pages. Other markets are commented on inc the Nikkie  as well as pro cyclical rotation, etc.

Without more delay here the report:

Wklytech-07-05-13

All the best

Rich

 

 

 

 

 

 

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