Market action was mostly choppy and stocks ended basically flat yet again as Trump cancelled talks with North Korea. One exception was NASDAQ stocks led by Netflix (NFLX) which hit all-time highs, up over 7% for the week.
Many must have stayed home watching its original content such as Stranger Things (a show and not the news) or headed out for the long weekend with their IPad in tow so they can watch some other Netflix show.
Here are the takeaways from this week’s market action
1) The key US market indexes continue to compress in a very tight range
2) Our Risk Gauges backed off from extremely bullish readings with junk debt showing weakness versus US bonds
3) Market Internals have weakened for big cap stocks (SPY and DIA) but remain firm for the technology laden NASDAQ (QQQ) stocks
4) There is a compelling short term pattern in three of the key US Stock Indexes and which way it breaks will determine the next intermediate term price move (how to play this setup is covered in this week’s special webinar on slingshot patterns)