The FRED Report – Financial Research, Education & Data
Mid Week Update
Volume 16, Issue 12
February 14, 2024
Download PDF Version here
Update of Market View
We have been looking for some correction since the beginning of February. We will see if a correction started on Tuesday the 13th. If it has, then we could see a move
down to the 480 area on SPY, and if that breaks a test of the 460-area is possible. One other concern we have had is interest rates.
A while back we published some key levels on TNX (42) and TYX (44). We have exceeded these levels. We show weekly charts of these, and ask yourself – if these were
stocks would you buy them? In other words, there is more interest rate risk than the market currently believes. We could see a move to the 5-area on TYX if this really
becomes extreme.
We do note that it is options expiration this week – all sorts of weird stuff may happen – but the market is set up to correct a bit more.
Other Points of Interest
Thanks to a client, we found a very strong MidCap chart: XMHQ (Invesco®MidCap Quality ETF). This MidCap chart could pull back to test 93 or so but is otherwise a strong
ETF. We would buy a daily stochastic recycle.
