TradingEdge Weekly for Mar 13 - Crude oil futures, Risk On/Off Indicator shift, Market breadth signals, Financial sector insiders
Key points:
- Crude oil futures broke sharply higher amid geopolitical tensions, signaling potential reversal
- The Risk On/Off Indicator dropped below 35%, signaling short-term market challenges
- Market breadth signals show deterioration despite S&P 500 hovering near highs
- Financial sector insider buying surged, hinting at potential broader market strength
- VIX volatility spikes and McClellan Oscillator divergence highlight market friction
House view:
- Stocks:
- Short-term: Bearish. Currently, nearly all indicators are unfavorable, as detailed in the "Where we're at" section. U.S. equities suffer a brutal selloff amid a stagflation shock, as negative February nonfarm payrolls (-92k jobs vs. +59k expected) and a spike in oil prices trigger full risk-off mode. The index now tests its critical 200-day moving average, the long-term bull/bear line in the sand. This time frame covers 1-4 weeks.
- Intermediate-term: Bearish. Market momentum continues to weaken and is now in a risk-off state. T

