Risks Are Rising, Breadth Is Falling

Risks Are Rising, Breadth is Falling The S&P 500 has rallied to the 2,800/80 resistance zone with an increasing number of negative divergences, hinting that the move from Dec 2019 is close to a finale.  The Canadian Financial sector is likely to correct greater than 15%, as it moves into the 4-year cycle low. The move down in Can 10-year rates is stretched and rates can consolidate or even have a counter-trend bounce higher as it digests recent price action below the 1.80% resistance level. Market Trends The S&P 500 daily cycle is in the final stage of topping, which will lead the topping of the weekly cycle as well. Can10yr rates triggered a daily sell signal, but this move into the daily cycle low should be counter-trend move before rates continue lower. USDCAD daily cycle is topping, while longer-term weekly and monthly cycles remain positive. TRI Cycle & Trend Signals* The TRI Cycle and Trend Signals are shown below.  These signals are as of market close on March 29, 2019.  Please see the TRI Overview document for further information. Source: Fieldhouse Capital Management Equity – Risks Are Rising, Breadth Is Falling The S&P 500 has rallied to the 2,800…

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