As the S&P500 pulls back from all-time highs, Alex Cole and Tyler Wood, CMT identify across multiple timeframes this countertrend correction within the “Go” trend conditions. This week we take a closer look at GoNoGo Trend® conditions across several areas of the commodities markets including precious and industrial metals ($GOLD, $COPPER), softs ($COCOA, $COFFEE) and energy ($OIL) all trending in “Go” conditions and outperforming US equities ($SPY) on a relative basis.

The recent move higher in US treasury rates ($TNX) and the US Dollar Index (UUP) have the potential to cause headwinds for risk assets. The rotation of market leadership into cyclical sectors held up this week as shown in the GoNoGo Sector RelMap®. Energy ($XLE), materials ($XLB), financials ($XLF) and industrials ($XLI) maintain their trend of outperformance against the S&P 500 index. Alex and Tyler dig deeper into the industry group level to see exploration and production ($XOP) leading the energy sector (XLE) higher. Finally, Alex and Tyler explain the importance of the GoNoGo Oscillator and the objective zero line and what to watch for next in terms of trend continuation and opportunities to enter on pullbacks.

Tickers:

• SPY – Daily & weekly
• GoNoGo Asset Class Heat Map
• TNX – 10 Yr Yields – Weekly & Daily
• GoNoGo Commodities RelMap
• $GOLD
• $COPPER $COFFEE
• $OIL
• $COCOA
• GoNoGo Sector Relmap
• XLE Industry Groups Relmap
• DJUSOS/ $XOP – Leading industry group