The U.S. market was shifted to an Uptrend Under Pressure from a Confirmed Uptrend. The S&P 500 and Nasdaq fell 2.4% and 2.5%
for the week after dropping ~3% on Friday. Both indices breached their 21-DMA for the first time since the beginning of September. It was
the largest down day for the indices in six months. Support is now the rising 50-DMA (6,530, 21,948), which is ~1% below. The distribution
day count stands at one and five, respectively.
Author: Deepashree MC
Won Europe Today
We released our Weekly Global Laggards Report today. Click here to access the full report. The stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance. European stocks include Betsson B (BETS.SE; BETSB:SS).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back 28bps and 8bps, respectively, on lower d/d
volume, avoiding a distribution day on the S&P 500. The first level of support is at the rising 10-DMA (6,708/22,810), followed by the 21-
DMA (6,659/22,561). The distribution day count stands at zero and four, respectively, after one day expired on the S&P 500 yesterday
after market close.
Won Europe Today
Yesterday,
- European markets rebounded sharply from earlier losses, led by strong gains in French and Spanish indices, with the latter hitting its highest level since 2007. Steelmakers rallied after the European Commission proposed cutting tariff-free steel import quotas by nearly 50%.
- The Stoxx 600 advanced 0.8% on higher volume and is hitting record all-time highs. The index is trading above all its key moving averages. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among key movers on the Stoxx 600, shares of German automaker BMW (BMWX.DE; BMW:GR) fell more than 8% after the company trimmed its annual profit guidance due to revised tariff assumptions and weakness in the Chinese market. On the other hand, shares of Puma (PUMX.DE; PUM:GR) closed ~7% higher after receiving a rating upgrade.
- Most sectors closed in positive territory. Mining (+184bps) and Banks (+141bps) led the gains, while Automobiles (-203bps) and Food and Beverage (-53bps) were the sole decliners.
- Among major indices, France’s CAC 40 rose more than 1%, bouncing off support at its 10-DMA. The index is making a new six-month high. Germany’s DAX 30 was up 0.9% and closed near its three-month high. Immediate support is at its 10-DMA. The U.K.’s FTSE 100 rose nearly 0.7% after ending flat in the past few sessions. The index is making new all-time highs.
- All the 16 indices we track closed in the green, except Austria and the Netherlands. Ten are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and four in a Rally Attempt. The average distribution day count stands at 2.4.
- Actionable names in the European Focus List are Rheinmetall (RHMX.DE; RHM:GR) and Safran (SGM.FR; SAF:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq advanced 58bps and 112bps, respectively, bouncing off
their 10-DMA into all-time highs. The first level of support is at the rising 10-DMA (6,702/22,762), followed by the 21-DMA (6,651/22,515).
The distribution day count stands at one and four, respectively, with one day expiring on the S&P 500 today after market close.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index ended flat last week. It is trading below all its key moving averages. It is consolidating below its
declining 10-DMA, which has crossed below all its long-term moving averages. Support is at $75.8 (-3.2%), followed by $75.6 (-3.5%).
Won Europe Today
Yesterday,
- European markets ended lower, weighed down by weakness in healthcare and banking stocks. However, losses were limited by a rebound in French luxury shares, as new designer debuts and efforts to improve affordability fueled optimism for a gradual sector recovery.
- The Stoxx 600 closed 0.2% lower. The index is consolidating near its record highs after advancing in the past week. It is extended from its near-term moving averages. We recommend a selective approach to adding names on a high-volume breakouts or decisive retake of their key resistance levels.
- Among key movers on the Stoxx 600, shares of British retail group B&M (BME.GB; BME:LN) closed almost 8% lower after the company forecasted a shortfall in H1 FY26 core earnings.Meanwhile, shares of Europe’s largest copper maker Aurubis (NDA.SE) rallied 9% following reports of the company’s plan to raise premiums by 40%.
- Among sectors, Food and Beverage (+69bps) and Utility (+32bps) gained the most, while Technology (-113bps) and Banks (-94bps) led the losses.
- Among major indices, France’s CAC 40 ended flat. The index closed above its 10-DMA despite breaching the level briefly during the day. Germany’s DAX 30 closed flat for a second straight session. The index is consolidating after having gapped up in the previous week. The U.K.’s FTSE 100 also closed flat and is trading at its new all-time high, above all its key moving averages.
- Norway recorded its sixth distribution day.
- Ten of the 16 indices we track closed in the red. Ten are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and four in a Rally Attempt. The average distribution day count stands at 2.4.
- Actionable names in the European Focus List are Rheinmetall (RHMX.DE; RHM:GR) and Safran (SGM.FR; SAF:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 38bps and 67bps, respectively, on lower d/d
volume, pulling back from all-time highs. The first level of support is at the rising 10-DMA (6,691/22,700), followed by the 21-DMA
(6,641/22,462). The distribution day count stands at one and four, respectively.
Won Europe Today
We released our European Weekly Summary yesterday. Click here for the full report. Key points from it include:
- The Stoxx 600 gained almost 3% last week, reclaiming its previous rally high, and was upgraded to a Confirmed Uptrend. Most major indices were shifted to a Confirmed Uptrend as they retook their key resistance levels.
- On the sectoral front, Health Care and Technology were the prominent gainers, while short-term momentum is building in Consumer Cyclical and Retail. Financial and Utility were slightly weak during the period.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 36bps and 71bps, respectively, on lower d/d
volume and remain near all-time highs. The first level of support is at the rising 10-DMA (6,686/22,680), followed by the 21-DMA
(6,633/22,489). The distribution day count stands at one and four, respectively, after one day expired on the Nasdaq yesterday after the
close.
