Two crucial breadth developments

S&P 500 brought another day of reliable gains delivered to clients both swing and intraday, and I do tolerate the lackluster overall breadth (advance-decline volume, I‘m looking at you mainly). That‘s because positive developments such as latest earnings in tech result in broadening breadth in this till now lagging sector (called beginning of the week to start outperforming), crypto getting the dual boost of Atkins for SEC chair, and Powell talking Bitcoin favorably – here we go, $100K overcome), and financials meaning mainly banks to benefit from any deregulation (whiff of which appeared finally yesterday, making the way for this three day XLF correction to get checked, and then, tech breadth will keep improving during today‘s session as well).

Today‘s unemployment claims will prove as non-event, confirming decent US economy status – I‘ve been calling for positive economic surprises for quite a while. Quick check on the yields chart follows. Premium clients know I expressed distrust of the oil upswing before yesterday‘s open, too.

Let‘s mve right into the charts – today‘s full scale article contains 3 more of them, with commentaries.

Crude Oil

On this occasion, oil spent even less (less to none) time above the 50-day moving average, and the distrust expressed in yesterday‘s analysis, was subsequently confirmed. Much intraday volatility with prices making no sustainable progress either way (for now, as big picture Trump admin favors lower prices through increased domestic production) – rips unless significant headline driven ones, are to be sold, that‘s the working hypothesis (note by how much oil stocks went down yesterday, too).