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Over the weekend, Banksy, the anonymous underground graffiti artist pulled off one of the best pranks ever in the art market.  One of his paintings with a girl with a balloon sold at auction for $1.4 million and after the hammer half the painting dropped through the bottom via a hidden shredder. Banksy's appeal is that he wildly ironic and dark and I love it.  He's anti consumer and doesn't play by the rules and if you haven't seen the video online here it is.  Naturally the price is worth double after the stunt.  

If you've been paying attention to markets outside of the US, they have been going through a shredder in the past year. Markets ex US just look terrible which I've been showing all year with the Vanguard World ex US ETF.  With interest rates in the US moving higher in a rapid pace last week spooked the US equity markets, especially with the very crowded FANG mega cap tech/consumer stocks.  Small cap and Mid cap sectors are seeing significant pullbacks too in the past month.  Save hiding places are few and far between in this environment and currently there are no signs of oversold conditions or oversold bullish sentiment.  I continue to recommend a larger than normal cash percentage weighting.  

This Wednesday, we are doing a webinar at 10:15 am EST with a replay available after if you can't watch live.  We'll go over current markets and sentiment. Here's the link to sign up.  We also are working on modeling out shorter term S&P and Nasdaq 100 trading strategies which you can see below under US indexes.  More details on this in the coming days.

• US Markets -  Sentiment starting to break the majority level under 50%.  
  
• Hedge Fund Telemetry Trade Ideas - No changes today.  I remain at my most bearish positioning since January
  
• A couple of ratios I'm watching today - SPY vs IWM, SPY vs TLT
  
• US vs the world - US is starting to roll over while the rest of the world has looked terrible all year
  
• Bad Breadth - US divergences
  
• US Sector Update - Biotech
  
• Tesla Update - Talk of DIP financing is the last thing Tesla bulls will want to see.  
  
• PPO Monitor - Percentage Price Oscillator Force Ranked Sector Rotation - MAJORITY under all moving averages and MAJORITY of ETF's hitting 20 day lows today.  
  
• Bloomberg Technical Pattern Recognition Screen
  
• Currency Update - Very critical moment but tomorrow is more important for follow through or stall
  
• European Market Update - Steep drops should break down further
  
• Global Market Update - Very weak
  
• Asian Market Update - Japan should work lower
  
• Crude Update - Stalling and sentiment remains extreme but starting to drop
  
• Gold Update - Gap down today but remains sideways for the most part
  
• Bond Update  -  US Bond market closed today but ETF's triggering Combo exhaustion signals
  
• DeMark Screens - Daily, Weekly, Monthly upside/downside exhaustion signals within the S&P 500 and Euro Stoxx 600 Last week's data updated
  

Here's a link to the Hedge Fund Telemetry market sentiment page with 40 charts of sentiment including equities, bonds, currencies, and commodities updated each day.  When the new website launches we will be adding new charts and historical sentiment data for Euro Stoxx 50, UK FTSE 100, German DAX, French Cac 40.  We will be adding Japanese Bonds, German Bunds, and a few more.  
SPX bullish sentiment is at 44% now below the 50% majority line

SPX daily right at the 50 day

SPX 60 minute tactical time frame is really a great way to trade shorter term using both the upside / downside DeMark Sequential and Combo and within a 5 wave move.  We're going to add this strategy and document it on the new website for clients to follow.  Currently this traced out an upside 5 wave move with several upside exhaustion signals and this recent move lower is wave 1 of 5 lower.  

Nasdaq bullish sentiment is at 53% and will likely break the 50% majority line.

NDX Index is really falling in a double black diamond steep fashion

NDX 60 minute tactical similar to SPX with this being the first of 5 waves lower

Nasdaq Summation Index is firmly below zero and it is when people discover risk.  Quite a divergence ahead of the steep pullback in the past week and this is not oversold

IWM Russell 2000 has the potential to bounce in the coming days with the today's green Setup 9 but if this continues lower a red Sequential Countdown will be in play

Trade Ideas Sheet - Long and short US equity ideas including ETF's.  We will be overhauling the Trade Ideas Sheets for long only, short only, ETF's when the new website rolls out soon.  There will also be a clearer email distribution with changes.  
Trade Ideas Changes:   NO changes today  
Stops on everything.  TSLA 320, GDX 17.35 , FEYE 16.00, NVDA 295,  QQQ 190 (raised stop), XLK 79 (raised stop), SPY 295, XLY 118, AXP 114,  XRT 53, IWM 172, XLV 95, BRK/B 225, DIA 275, XLI 81.50, IBB 123, AMD 30 (lowered stop), ROST 100.50, ABT 76, ORCL 53, LULU 165, AMZN 1990 (lowered stop to breakeven), DXJ 61, GLD 111

SPY vs IWM weekly has seen inflection with pink Combo 13's and green 9's

SPY vs TLT - stocks vs bonds daily with another pink Combo and red Sequential in play and at the upside wave 5 price objective.  We'll see if this ratio turns like it did in January and February

Total US market has started to roll over

World ex US  is making new lows.  The rest of the world has been terrible.  Some people have thought it's time to buy the rest of the world or emerging markets but it the US starts to fall it will take the global markets lower too.  Perhaps by less but I don't want to bet on that pair trade

NYSE percentage of stocks above the 200 day continues to drop and diverge

S&P cumulative breadth could have peaked

IBB Biotech is breaking short term support.

Tesla continues to fall and has a downside DeMark Countdown in progress.  There were rumors over the weekend that the company was possible going to do some sort of DIP financing.  DIP financing is not the type of financing bulls will want to see as it usually is deployed ahead of bankruptcy filings.  Every move lower will shake out more long term bulls.  

The PPO Monitor is a proprietary monitor developed to force rank Indexes, Sectors, and Stocks.  It ranks top down by strongest to weakest by percentage above/below the 50 day moving average.  Shorter term signals can be seen when the 10 and 20 day moving averages turn up (green) or down (red) which often are followed by the 50 day moving average.  This is useful to watch for historically overbought/oversold percentage above/below the 50 day moving average.  It is non correlated with the DeMark Indicators however we have found upside/downside exhaustion signals often occur when something rises to the top or drifts to the bottom of the monitor - increasing the timing aspect. We share this monitor with clients with Bloomberg Terminals.  An added feature is that each market/ETF can be expanded with each component force ranked in the same way.  A couple other features include price deviation from intraday VWAP (useful for intraday reversals) and new 20 day highs/lows on right side.  Please inquire if you would like to be permissioned to use the PPO Monitor.  

Today's highlights: Almost all the sectors are under the 10, 20, and 50 day moving averages now and the majority of them have made 20 day lows today

S&P 500 Members/Absolute Price Performance and Relative Price Performance vs S&P 500 and Sector ETF's.  ETF's vs Index Sectors.  Pair Trades.  Long side  is first symbol, short side is second symbol.  

US Dollar bullish sentiment is at 56%

US Dollar Index up tomorrow will start a new red Sequential Countdown.  Stay tuned

Euro bullish sentiment is at 33%

Euro Spot

Yuan finally broke below the 6.9 level and will be interested if tomorrow it's down again. Serious implications if so

Yuan weekly has been a guide I've shown before as it still has some room with the DeMark Countdown before it is exhausted.  The weekly signals have been excellent

Euro Stoxx 50 continues to look horrible

Euro Stoxx 600 new 7 month lows

German DAX nearing support if you can call it support

Italy broke support as expected and now the wave 5 target comes into play

Spain with green Setup 9 but will it hold?

UK looks lower with Countdown in play

Bloomberg World Index at the lower end of the range

EEM Emerging Markets ETF new lows

Last week I showed the Brazil ETF with the new upside Countdown starting but I really did not want to risk buying ahead of the election.  Looks like the market likes who's leading.  

India still looks lower but could try and consolidate some of the recent losses

Nikkei bullish sentiment is at 76% down from the bell ringer 96% extreme reading

Japan ETF DXJ

China / Hong Kong FXI ETF just can't get any momentum on the upside to stick

Crude bullish sentiment is at 83% and remains extreme

WTI Crude Futures

Gold bullish sentiment is at 21% and needs to move above 40% to get momentum to the upside

Gold gapped down but still is sideways for now

Bond bullish sentiment is at 33% and is getting closer to oversold levels - having an issue with the chart today.  

MOVE Index is a "bond VIX" and it's starting to move up on the weekly chart

IEF ETF

TLT ETF

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