Utility trying to “boost” stock market | GoNoGo Chart

good morning. Welcome to this week’s Flight Path. Although there was a big bounce from Friday’s bars, US stocks have continued to show weakness this week. Treasury prices have entered a period of uncertainty as the GoNoGo trend continues to draw amber “Go Fish” bars. US commodity indices reversed back to a weak “NoGo” as the dollar was able to hit a weaker aqua “Go” bar.

$SPY tries to stop the fall

The price has been struggling since the Go Countertrend correction icon we saw a week ago, which is understandable because that icon tells us that momentum is waning. We will watch now to see if the price can set a new higher low. This suggests that the “go” trend will continue for some time. Friday’s bar was positive in that regard. We turn our attention to the oscillator panel and see that price action has caused the GoNoGo oscillator to drop to test the zero line above. Stay there and you’ll see the GoNoGo Squeeze start. If this level holds as support and the oscillator can bounce back into positive territory, we could see signs of a continuation of the Go Trend and expect the price to attack the most recent high.

Looking at the larger weekly chart, we can see that we have set slightly higher highs and the GoNoGo trend is still drawing a strong blue “Go” bar. The GoNoGo oscillator is in positive territory with a value of 3 and is not yet overbought. Perhaps this means there is more room to run during this period.

Treasury yields in uncertain times

GoNoGo Trend painted a series of amber “Go Fish” bars last week. The “Go Fish” bars for a full week are somewhat unusual, so we know that GoNoGo Trend doesn’t have enough criteria met to be able to identify a trend in either direction. As the market determines price direction, we can see that the GoNoGo Oscillator is in positive territory as it breaks above the zero line. A “Go” trend is more likely to emerge in the panel above due to positive momentum.

Dollar Shows Continued Weakness in “Go” Trend

This week we saw more weakness after a single yellow “Go Fish” bar. We can see that the price has been struggling to move anywhere for several weeks and it has been some time since we last saw a strong blue “moving” bar. Looking at the oscillator panel, we can see that there is a tug-of-war going on between buyers and sellers at these levels. GoNoGo Oscillator is riding the zero line and Max GoNoGo Squeeze is displayed. It is important to observe the direction of the squeeze break to help determine the next direction of price.