Space Exploration Wednesday, page-2

Tuesday Evening Liqueurs. 19 July, 2016.

XJO down just a little today -0.1%. Volume remains above average but not a lot above.

Here's the Chart for STW, tracking ETF for the XJO:



STW down today -0.25%.

While the pundits in the media trumpet that the market today broke its string of eight days in a row up - it all depends on how you measure it. Advances exceeded declines for the ninth day in a row. And Up Volume exceeded Down Volume today for the tenth day in a row. So there were still plenty of punters willing to chance an arm and a leg on more upside. VIX (the Fear Index) which usually trends inversely to the market also fell today, -3.51% (that's bullish for stocks).

Until we see a clear change in the trend from up to down, we have to consider that this is still a bull rally.

The relationship between the short term Stochastic (14.3.5) and the long term Stochastic (50.10.10) suggests that any pullback is likely to be bought.

Here's the XEJ Chart:



Despite Energy falling in the U.S. overnight, our Energy sector made a new closing high. The close is marginally above resistance so we might need more confirmation. It is also below the intra-day high on 9 June. This is promising - but it needs to provide more proof.

Here's the XUJ (Utilities) Chart:



Utilities had a ripper today. Up +1.72%. Utilities is one of the best Risk-On/Risk-Off indicators we have. Such a strong upside move by Utilities while the market had a modest retreat suggest we're entering a Risk-Off Environment. Caution.

RB