In this week’s edition of the GoNoGo Charts show, Alex and Tyler review markets following the recent 50-basis-point hike from Fed Chairman Jerome Powell. While the relief rally in the S&P 500 has retained its “Go” trend conditions, early warning signs from GoNoGo Oscillator suggest negative momentum as a threat to the durability of the recent run. On longer timeframes, $SPY shows a weaker “NoGo” on pink bars and a neutral inflection point for momentum.
Using a risk proxy ratio HYG:TLT, Alex and Tyler highlight the risk-off behavior in the bond market even in the face of the recent equity rally. Defensive sectors outperform the index on a relative basis, with outperformances in both healthcare ($XLV) and staples ($XLP) leading. Johnson & Johnson (JNJ) shows a strong “Go” trend, which is somewhat unique in an otherwise heavy market.
This video was originally recorded on December 15, 2022. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android and more!