Good morning and welcome to this week’s Flight Path. Equities saw the “Go” trend remain strong with another uninterrupted week of strong blue “Go” bars. Treasury bond prices remained in the “Go” trend as well but we saw a whole week of weaker aqua bars. U.S. commodities saw the “Go” trend strengthen this week after several weaker aqua bars last week. The dollar held on to its “NoGo” trend but painted weaker pink bars to end the week.
$SPY Continues in Strong “Go” Trend
The GoNoGo chart below shows that the “Go” trend continued this week and maintained its strength. A complete week of strong blue “Go” bars saw price hit another higher high. GoNoGo Oscillator remains in positive territory at a value of 3 but is no longer overbought.
The longer time frame chart shows us that the “Go” trend remains strong this week with another bright blue “Go” bar. However, it was a very small weekly trading range as price crept to a new higher high. GoNoGo Oscillator is in positive territory at a value of 3 but has not reached the same highs as it did on the last price high.
“NoGo” Trend Continues with a Full Week of Pink Bars
Treasury bond yields seem to have set a new lower low as price fell from the mid week high and GoNoGo Trend painted weak pink bars. GoNoGo Oscillator is riding the zero line and we see a GoNoGo Squeeze building close to its Max. It will be important to watch to see in which direction the Squeeze is broken. If the oscillator breaks out of the GoNoGo Squeeze into negative territory then we will see signs of NoGo Trend Continuation and look for price to challenge for new lows.
The Dollar Paints Weaker Pink “NoGo” Bars
Price continues to consolidate sideways this week and GoNoGo trend has started to paint pink bars as the “NoGo” trend weakens. During this time, GoNoGo Oscillator has struggled to move away from the zero line and has now dipped back into negative territory. If the oscillator remains negative, we will say that momentum remains on the side of the “NoGo” trend. If the oscillator recaptures positive territory it would signal that momentum is out of step with the trend.
USO Rolls Over as Price Sets New Lower Low
$USO saw prices roll over mid week and GoNoGo Trend painted strong purple “NoGo” bars in the second half of the week. The strong rally off the lows saw GoNoGo Oscillator break into positive territory but it has quickly returned to test the zero line from above. If it fails to find support and moves back into negative territory then momentum will once again be on the side of the price trend and we will look for NoGo Trend Continuation and price to challenge prior lows.
Gold Continues to Shine
Gold saw another uninterrupted week of strong blue “Go” bars. Price climbed to a new high again this week but we do see a Go Countertrend Correction Icon (red arrow) at the high indicating that price may struggle to go higher in the short term. GoNoGo Oscillator shows that momentum has fallen out of overbought territory on heavy volume. We will watch to see if the oscillator finds support as it approaches the zero line.
Sector RelMap
Below is the GoNoGo Sector RelMap. This GoNoGo RelMap applies the GoNoGo Trend to the relative strength ratios of the sectors to the base index. With this view we can get a sense of the relative out performance and relative underperformance of the sectors. 6 sectors are in relative “Go” trends. $XLY, $XLC, $XLI, $XLB, $XLU, $XLRE are painting relative “Go” bars.
Communications Sub-Group RelMap
The chart below shows a relative trend breakdown of the sub groups within the communications sector. The Sub-Group RelMap plots the GoNoGo Trend of each sub index to the $XLC. We saw in the above GoNoGo Sector RelMap that $XLC is a new out-performer, with GoNoGo Trend starting to paint aqua “Go” bars. If we look at the breakdown of the groups in the map below we can see where that outperformance is coming from. Painting a first aqua “Go” bar, in the 2nd panel, the broadcasting and entertainment sub-group has entered a new “Go” trend. 
$FOXA Climbs to New High in “Go” Trend
The chart below shows that $FOXA has been in a “Go” trend for several months as price makes a series of higher highs and higher lows. Now, GoNoGo Trend paints a string of strong blue “Go” bars as price breaks above prior high resistance and makes a new high. During this trend, GoNoGo Oscillator has primarily been at or above zero. Recently, as price fell from its last high on weaker aqua bars, GoNoGo Oscillator fell into negative territory but quickly recovered on heavy volume as the price trend strengthened. Now, with price at new highs on strong blue “Go” bars, GoNoGo Oscillator is approaching overbought territory on heavy volume.
$DIS Sees “Go” Trend Continue
$DIS entered a new “Go” trend a few weeks ago. Since then, we have seen the trend strengthen from aqua to strong blue bars and price climb to a new higher high. GoNoGo Oscillator is rising back toward overbought territory on heavy volume. With strong rising momentum and bright blue bars, we will look for price to continue higher from here and the “Go” trend to likely persist. 
