XJO down this week. XJO Monthly Chart.March was a good month...

XJO down this week.

XJO Monthly Chart.

March was a good month for the XJO, up +6.39%. April has begun with a consolidation period, down just -0.29%. 8-Month EMA and Hull MA13 have both turned bullish. It's early days in the month of April, so we need more time to see if this bullish bias can hold for the rest of the month.

Weekly Chart.

XJO was negative this week, -0.21%. That's the first negative week after three weeks up in a row.

The chart, however, is remains bullish. It has moved above the 8-Week EMA, Supertrend (1.5/7) Hull Moving Average remain bullish. Any pull-back is likely to be bought.

Daily Chart.

This week, XJO weakened with the 8-Day EMA, Supertrend (1.5/17) and Hull MA13 all turning short-term bearish.

Using multiple time-frame analysis, Monthly and Weekly XJO remain bullish. Daily XJO has turned bearish. Wait for all three to be in sync before adding more money to this market.

Relative Strength of Sectors - past 52 days.

This chart compares the performance of each sector against the performance of the XJO. Sectors above zero have outperformed the XJO over the past 52 days. Sectors below zero have underperformed XJO over the past 52 days.

As a general rule, look for stocks in the best sectors and avoid stocks in the worst sectors. For example, look to Utilities (XUJ), Energy (XEJ) and Materials (XMJ) for stocks to buy. Avoid Consumer Discretionary (XDJ), Telecommunications (XTJ) and Health (XHJ). (Exceptions to that general rule could occur.)

New Highs - New Lows Cumulative.

NH-NL Cumulative this week returned to its 10-Day Moving Average, a break below would send a big caution signal to long-term investors.

Bonds versus Stocks.

At the end of the week, Stocks had a clear advantage over Bonds. The relativity has weakened a little with the chart now below its 20-Day MA. The chart is only a little below its recent high, which was the best its been since late November, 2020. Extremes like this are often contrarian signals.

Conclusion.

after three weeks of strong gains, the XJO pulled back a little this week, with the daily chart now short-term bearish. The weekly and daily charts remain positive. Wait for the three time scales to come back into sync.

Traders should concentrate on the strongest sectors: Utilities, Materials and Energy.