Monthly Candles are Here!

1/?Value Index Peeking Out of Burrow

Analyzing the market involves going through multiple charts to identify strength or weakness indices, sectors, market capitalization, category, sub-category and so on. One chart that is among the list mentioned is the Growth vs Value ratio chart. Regardless of time horizon, risk profile, goals, and style, one must be aware of WHAT is moving the market.?

Although the Growth is absolutely crushing Value at the moment and making new monthly all time high (you’ll have to take a look at IWF/IWD on your portal), the Russell 1000 Value ETF seems to be attempting to get out of hibernation. The index has broken out of its sideways consolidation of over two years and closed above the overhead supply zone of 170, on the monthly chart. For that matter value stocks like Berkshire Hathaway, JP Morgan Chase have been doing great! Growth areas such as Tech on the other hand, have certainly weakened. Value sectors typically tend to be financials, industrials, materials, energy. And there are some very good examples of strong bullish trends in these sectors.?

If this breakout holds its ground, the IWD could be headed to the next resistance zone of 190, but it's crucial that the price trade above the 170 for that to play out.

2/ Materials Make a 2-year High

XLB is the Materials sector that is now breaking out of a close to three-year base of a sideways trend. As can be seen in the chart, multiple attempts were made to break above the supply/resistance zone of 86.50, with two false breakouts...

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