Defense begins on the field | Gonogo Show April 26, 2024 | GoNoGo Chart

The S&P 500 trend continued its ‘NoGo’ status this week despite a relief rally. Alex Cole and Tyler Wood, CMT identify cross-market factors including rising interest rates ($TNX) and a strong U.S. dollar (UUP) that could create headwinds for risk assets. This week we take another closer look at GoNoGo Trend® conditions across trending and outperforming sectors. In particular, Consumer Staples ( These are characteristically “defensive” sectors of the market and are attractive to investors during periods of weakness across the broader index.

Alex and Tyler dig deeper at the industry group level within the Utilities Sector (XLU) to see which power providers are driving relative performance. We bring to you NextEra Energy (NEE) and Edison (EIX) to showcase these opportunities within a leading industry group in the Performance sector.

On the educational side, we show examples of bearish divergences and discuss how to interpret these concepts as signals of trend weakening or exhaustion rather than trading signals to close long positions. Using Boston Scientific (BSX) as an example, we can see that price is the most important indicator in trading decisions. A bearish divergence emerged while the momentum was waning, and we also saw negative momentum for a while, and that weakness pushed the price further apart. action.