We're below former resistance levels in all of the major US Indexes. While structurally, longer-term uptrends are still intact, there is short-term risk of price volatility and/or opportunity cost. This is where establishing your time horizon is important. We laid out important levels from an intermediate-term horizon earlier this week. I think we're in for more of a sideways mess than anything else for now.

Historic breakouts are rarely clean. Go back and look at the early 80s. If we are to resolve this 18-month range in US Indexes higher, with European Stocks also breaking out, I'd argue it's a historic market event. If that happens, a bumpy start would not be anything we haven't seen before at other important points in the past.

With that in mind, let's take today to focus on where we stand in momentum.

From the desk of Tom Bruni @BruniCharting

Cannabis stocks have been a bit of a disaster since late March, but let's take a look at what's happening and if there's a way to play it.

From the desk of Tom Bruni @BruniCharting

This post is a deep dive into the Social Media subsector, which was the topic of this week's Mystery Chart.

For full the full context around this post, please read that one first.

From the desk of Tom Bruni @BruniCharting

As part of our Institutional Top 10 Charts report on February 21st, we wrote about why Litecoin was leading the Cryptocurrency regime change.

Several weeks later on April 3rd, we followed-up on that call by noting the improving price action of Bitcoin and Ethereum and suggesting a long-term bottom was likely in for the Crypto space.

Several months later, let's see where we are now.

We've been writing about Financial Services/Bank Stock outperformance for a while, especially as it relates to the breadth of the broader market.

Despite Financial Services accounting for a third of the Nifty 500's weighting, they cannot support the entire market on their own. Especially if/when they need to correct...like they are now.

That brings us to today's charts.

From the desk of Tom Bruni @BruniCharting

We've been watching some of the Energy ETFs we track most of this year for potential mean-reversion opportunities on the long side.

We recently discussed for our Institutional Clients an opportunity in the Small-Cap Energy ETF (PSCE), which rallied 17.50% from its 2018 lows before reversing back to those levels again.

The main issue in Energy remains that there appears to be an attractive mean reversion opportunity at the ETF level, but when we drill down into individual stocks there aren't many clean setups...making it difficult to identify what the main drivers of this move higher would be.

Let's take a look.

For the purpose of this exercise, we're going to look at Oil Services ETF (OIH) because its risk management level is the cleanest of the Energy subsectors.

In December prices retested their 2001 lows near 14.00 as momentum got deeply oversold, leading us to believe that a retest of that level with a bullish divergence would occur and create a sustainable bottom in the space. Here we are seven months later and we've gotten just that, except we're not seeing the upside...

From the desk of Tom Bruni @BruniCharting

We've been pointing to the improving relative strength of Financials in the face of falling Interest Rates in the US and around the world.

Today I want to focus on what we're seeing in Regional Banks.

From the desk of Tom Bruni @BruniCharting

When going through my chartbooks this weekend one chart stood out to me, highlighting a theme we've been pointing out to our Institutional Clients that's worth mentioning again.

From the desk of Tom Bruni @BruniCharting

The Dow Transports are the talk of the town due to their lack of trend on an absolute basis and their underperformance relative to the Dow Industrials, so I want to take a quick look and see if there are any themes we can take advantage of within its subsectors.

I think there is a big move brewing in the U.S. Treasury Bond Market. US Interest Rates have gotten crushed along with rates all over the world. It's not just a U.S. thing, but a global phenomenon. 

What if I told you that we can potentially make 50% on a trade with minimal risk. What if I also told you that it's showing tremendous relative strength and positive momentum? Do I have your attention? You'd certainly have mine!