Risk On As Stocks Roar Despite Geo-Political Turmoil

US Equities roared this week with each of the four benchmarks putting in a dazzling performance up over +2.5% on average,  performing with immunity from what most students of history would say is more than a hairline fracture. The escalation of hostility on the Golan Heights is troubing as well as the populist win in Italy unveiling an even more fractured NATO and EU.

Here are some of this week’s highlights:

  • All Key Equities Indexes regained positive phases
  • Daily chart momentum is still a concern for the benchmark SPY but IWM is a standout
  • IWM (US small caps) is emerging as market leader
  • Volume picked up with IWM showing strongest volume figures
  • There is a compelling short-term pattern in IWM
  • Risk Equities regained leadership over Utilities
  • Sector performance improved the general outlook
  • Volatility got hit hard and took out critical swing lows