TradingEdge Weekly for May 8 - Broad market buy signals, long-term rate trends, and sector momentum shifts
Key points:
- S-TCTM composite model triggers high-conviction S&P 500 buy signal with >70% win rate
- 7-1 Trend Strategy confirms favorable SPX momentum with strong risk/reward profile
- JIRTM signals long-term rising interest rates, favoring bond caution
- Bitcoin's $80k breakout aligns with bullish analogs, RSI surge, and institutional inflows
- Health Care faces seasonal headwinds and weak internal participation
- KOSPI AI-driven breakout shows narrow breadth with mixed US tech transmission
House view:
- Stocks:
- Short-term: Modestly Bullish. The VIX and CDX remain in healthy territory. U.S. equities experienced a healthy pullback after record-breaking gains, with profit-taking dominating trading as geopolitical tensions resurfaced. Major indices fell moderately while maintaining solid technical structures above key moving averages. Investors should closely monitor ongoing geopolitical developments alongside the upcoming April U.S. Nonfarm Payrolls (NFP) report. This time

