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Industrials & Transports Up, NASDAQ Down

|Includes: DIA, GLD, QQQ, SPY, iShares 20+ Year Treasury Bond ETF (TLT), XLE

Markets in Review: Asian stocks were lower on Monday & Tuesday. The Nikkei 225 ended their session at 9,465 - down 0.06% on the day. The Hang Seng ended their session at 20,562 - down 0.23% on the day. European stocks were higher on Monday. The FTSE 100 ended their session at 5,684 - up 0.56% on the day. The DAX ended their session at 6,625 - up 0.36% on the day. The CAC 40 ended their session at 3,205 - up 0.51% on the day. European stocks are higher this morning. The yield on the 10-Year US Treasury traded down from 1.998 percent to 1.946 on Monday, below its 50-day and 200-day simple moving averages at 2.081 and 2.132. This yield is around 2.000% this morning. Housing Starts fell 5.8% to an annual rate of 654,000 in March This follows a weak National Association of Home Builders Housing Market Index, which fell three points to 25 the first decline in seven months. Gold declined from $1658.7 the Troy ounce to $1642.0 then rose to $1659.7 this morning, staying below its 50-day and 200-day simple moving averages at $1694.3 and $1692.7, converging towards a "death cross". Crude oil traded up to $103.37 per barrel then declined to $101.80 on Monday then up to $104.07 below its 50-day simple moving average at $104.23. The euro versus the dollar declined from 1.3073 to 1.2998 then rebounded to 1.3168 this morning below its 50-day simple moving average at 1.3209. The Dow Industrial Average rebounded to 12,986.77 on Monday morning staying below its 50-day simple moving average at 12,998. The NASDAQ's declined to 2975.87 moving below its 50-day simple moving average at 3003.

Today's Four in Four Key Levels:
 

  1. Yields - The yield on the 10-Year US Treasury is still between its 50-day simple moving average at 2.080 and my semiannual pivot at 1.903.
  2. Commodities - Gold ended Monday between my semiannual pivots at $1659.4 and $1635.8. Crude oil remains influenced by quarterly, annual and semiannual pivots at $101.55, $103.58 and $104.84 with my monthly value level at $97.55.
  3. Currencies - The euro versus the dollar remains between my semiannual value level at 1.2980 and its 50-day simple moving average at 1.3210.
  4. Equities - Dow Industrials and Transports provided stabilizing forces for stocks on Monday ending the day straddling 50-day simple moving averages at 12,998 and 5229 respectively. The NASDAQ on the other hand provided a negative divergence closing below its 50-day at 3003. Apple (NASDAQ:AAPL) lost 4.15% as a surprising major drag for tech stocks. The keys for the week is the NASDAQ closing above or below its five-week MMA at 3003. A weekly close on the S&P 500 below my annual pivot at 1363.2 would be another negative for stocks.
  5. ValuEngine Valuations - Stocks are reasonably priced with 63.3% of all stocks undervalued with six undervalued sectors and ten overvalued sectors. Aerospace is 12.4% UV with Computer & Technology 11.7% OV, Medical 11.7% OV, and Retail-Wholesale is 11.7% OV.

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