Market pending earnings?

Perhaps there has been some pent up anxiety waiting for the earnings reports? Whatever the reason(s) for the market’s correction, it does appear folks won’t want to be invested until after the report cards show their true value.
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I’ll be the first to admit, it’s tough to stay invested. But it can be even tougher to time 2 IFTs with lousy end of day prices. So for now I’ll sit and wait for the market to unfold. I haven’t decided if I’ll pull back completely to G/F or double down my remaining 25% F into stocks.
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The AGG chart is looking great.
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I realize a whole lot of folks are watching the potential Head & Shoulders. While it is in the back of my mind, I’m not dwelling on it. After all, there are plenty of other folks out there watching it too. So for now, I’m just keeping an eye on the descending trendline. This week, I’d hope to see a bounce between 870-880, any lower any faster and I’ll start to get worried.



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On a side note, the monthly chart is giving us long-term investors fair warning. Thus far July has put in a lower high and a lower low. As a buyer, I’d like to see 777, and as a seller 1015.



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On the $SPXA50 we still have more room to fall, but we are getting close to the previous July 2008 bottom.



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Since drawing up this chart back in June, the dollar has been in a tight trading range. You would think with the recent drop in Oil the dollar would be reaping the benefits? Perhaps previous government intervention has something to do with it but I wouldn’t know.


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Cheers...
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[FLBeach]

You mentioned that the AGG chart is looking great. Since I'm new at this, can you explain or highlight the factors that indicate how the chart is looking? Is this something that will continue in the short-run, say July, Aug, and Sept?

 

[JTH]

I'm not a bond guy, so predicting where AGG will go for the next few months is beyond the scope of my comprehension.

As for the chart, I've been watching 101.6 as an area of key resistance around the time stocks hit their March lows.

We can see that area was tested & failed in Jan, May & Jun. Finally in July we broke through and have traded above that level over the last 8 trading days.

In addition, the slow stochastics have been embedded to the upside above 80 since 25 June. This is telling us that this stock is gaining momentum to the upside. This is supported by On Balance volume which has been above it's 18 day moving average.

AGG Daily Chart

On the weekly view it's a bit easier to see where the candlesticks were meeting resistance @ 101.60

AGG Weekly Chart

Over the last 15 & 45 trading days, AGG has outperformed $SPX, $EMW, $ EFA

Over the last 90 trading days AGG has outperformed $SPX

I don't know how long this trend will keep up, but as long as this market continues to falter, the F-Fund should be the better of all the funds.

Hope this helps, cheers...