Stocks and Bonds Remain Weak On DMA Table, New Buy Inc (CRM)

We are treating this column like a running conversation with the reader. That means in each new article we will tie back to prior articles. This enables you to see as we conclude an open thought.

Last week, we wrote about the DMA Channel and seeing it in a quote sheet. Our charting program Erlanger Chart Room allows us to see the DMA Channel on multiple periods at the same time. Instead of flipping through a daily, weekly and monthly chart we can see in the quote sheet all time periods. The brain processes much better than looking at individual charts.

We noted the indexes had only been able to clear their daily levels. We said, “It is going to be hard to get positive without seeing the indexes have their weekly DMA Channels bias improve”. After up days on Monday and Tuesday, the Russell 2000 and S&P 400 had gotten back into their weekly DMA Channels, barely. That fell apart on Wednesday, Thursday and Friday.

The table above now is using ETFs on the major indexes instead of the index as we get volume on the ETFs when we expand this table which we will when we want to point new themes to you the reader.

All equity indexes are below their various DMA Channels which means that the bias is negative. We added the iShares S&P 500 Growth ETF (IVW) and iShares S&P 500 Value ETF (IVE) this week along with Treasury Bond ETFs. All see their biases negative. Interesting that intraweek both iShares Russell 2000 ETF (IWM) and SPDR S&P 400 Midcap ETF (MDY) had moved into their weekly DMA Channel which was a positive but reversed on the Thursday and Friday action.

Treasury Bond ETFs remained in no man’s land as the 10-year moved up to 3.14% from 3.00% this past week. Again, bias remains negative across the yield curve.