Postcards: Northern (Risk) Exposure (Green for Now)

We're in positive conditions on our signals, but worries loom large heading into the Fed meeting and ensuing conference from Jerome Powell.

Market Update: Today's strength in Tesla (TSLA) has given this market underlying support. Small caps are getting a big bump off healthcare, and the squeeze is still on. Given the Fed meeting on Wednesday, we still recommend exercising caution.

As I said, I’m bullish through at least Wednesday… but this is an EXTREMELY strong snapback for the S&P 500 since it hit oversold. Remember - short squeezes are expected when the RSI and MFI are BOTH in oversold territory.

Now, the MACD is turning around and could signal a positive trend. This is the ultimate test of the 20-day and 50-day moving averages (the S&P 500 is currently sitting within fractions of a percentage point away)

We’ll revisit the data.