Technical Analysis Review 6/8/15

Key Points:

• Major indices remain range bound

• Bonds broke down from short-term range

• Europe broke down key support last week

• Internals are showing weakness.

S&P 500 (Daily):

The S&P 500 remains in its multi-month range. On Friday it formed a potential reversal candle near the ascending support. As such, a reversal can be expected early in the week.


TLT (Daily):

Bonds closed right under key support. If it stay below this level then one should expect the downtrend to continue.

TLT (Weekly):

On a weekly basis bonds are testing its 200 DMA. If a reversal candle forms on this level then one can expect a reversal.


VGK (Daily):

Europe broke down last week. One should expect Europe to test its 200 DMA.

NYAD (Daily):

The New York Advance Decline Line broke through its recent swing low last week. This deteriorating internal indicator is a minor warning signal in the bull market.

JNK (Daily):

JNK broke down from its channel last week. One should expect JNK to test its 200 DMA.