What a difference 45 calendar days make in the U.S. Equities market. From an over-sold condition, we now see several indexes and half the sectors are over-bought. If you purchased Discretionary, Health, Industrial, Technology, or Utilities back in mid-June or as late as a month ago, you would do well to set TSLOs to lock in profits.
When examining or using the indexes to garner a broad view of U.S. Equities, pay most attention to the NYSE and NASDAQ as they provide a large swath of stocks. Next on the list is the S&P 500 as it is so popular and contains the key large-cap companies. All three indexes show growth in the percentage of bullish stocks. These are positive signals.
As mentioned in the introduction, if you purchased any over-sold sector ETFs a month ago, now is the time to set Trailing Stop Loss Orders (TSLOs) to protect profits. If we can make it through the next few months without significant damage, the expectation is for the markets to move higher in the fourth quarter of 2022. This assumes rising interest rates will begin to bring inflation under control.