Good morning,
The message of the market has become more mixed over the past two weeks, and it would be unwise to deny some of the real technical improvement we’ve seen.
However, it hasn’t been all good news, and today’s report will feature a “Pros and cons” section to help investors decipher which improvements matter for our near-term outlook, and which do not.
Heading into this week, there is a litany of stories for investors to track, including the software meltdown, oil prices remaining elevated, the start of Q1 earnings season, and more.
But the most important question for equity investors is, how does the market respond to its first internal overbought condition since the rally began?
The action late last week didn’t inspire confidence that things have changed, and that underlies a still cautious outlook, despite improvement in some areas.
This week’s report will review:
Three key charts from last week
Pros and cons
The setup going into this week
Relative improvement for the Mag 7
A mea culpa on software
and more!
