Key points from this report:
Please refer to the attached PDF for the full report.
Software (IGV): The software benchmark has regained its 21-DMA ($80) on low volume but continued to consolidate below
resistance at its 50- and 100-DMA ($83). Quantitative metrics remain weak: Acc/Dist Rating of D. RS line has steadily declined off
February highs. Select large-cap leaders, including MSFT, CRWD, NOW, and SNPS, are at/approaching the 50-DMA resistance,
while FICO and NTNX are at/near their respective pivot. Eight of the 11 software groups in the O’Neil 197 groups witnessed a decline
in Group Rank over the last four weeks. Enterprise (#115) and Edu/Media (#112) had the sharpest decline. Gaming (#185) and
Desktop Software (#192) are ranked the worst. We recommend a risk-off approach to the IGV and its constituents as the index
continues to trade sideways, below its 50- and 100-DMA. Trim weak ideas that are breaching logical levels of support with declining
relative strength.
Please refer to the attached PDF for the full report.
Software (IGV): The software benchmark continues to chop around and remain below multiple resistance levels including its 21-DMA
($81) and 100-DMA ($83). Support is at its rising 200-DMA (~$77), which coincides with the January lows. Quantitative metrics are
mixed, with an Acc/Dist Rating of D along with a RS line that has steadily declined off February highs. Large-cap leaders MSFT,
NOW, SNPS, CRM, and CRWD are attempting to bounce but remain below key moving averages/resistance. Eight of the 11 software
groups in the O’Neil 197, have declined in Group Rank over the last four weeks with Security (#95) and Design (#170) showing the
sharpest decline. Gaming (#184) and Desktop Software (#191) are ranked the worst. We recommend a risk off approach to the IGV
and its constituents as the index has breached key moving average supports. Trim weak ideas breaching logical levels of support on
declining relative strength.
Please refer to the attached PDF for the full report.
Software (IGV): The software benchmark gained ~3% last week and bounced off its recent low ($78), which is slightly above its 200-
DMA ($76). The index faces resistance at the 100-DMA (~$83), followed by the 50-DMA (~$84). Quantitative metrics have improved
from the prior week but remain subdued, with an Acc/Dist Rating of D- along with RS line that has steadily declined off February
highs. Of the 11 software groups, only three are ranked in the top 50 of the O’Neil 197, including Database (#2), Edu/Media (#24), and
Financial (#36). Nine of the 11 groups have declined in group rank over the last four weeks, with Security (#85), Design (#147), and
Medical (#160) showing the sharpest decline. We recommend a selective approach to the IGV and its constituents as the index has
breached key moving average support. Trim weak ideas breaching logical levels of support on declining relative strength. Look for an
alternative entry in stocks that are retaking key moving averages with a constructive technical profile. Key earnings to monitor this
week include FL-stock NET (5/2), along with PCOR, TENB, CTSH, FTNT, and CYBR.
Please refer to the attached PDF for the full report.
Software (IGV): The software benchmark declined ~5% and breached support at its 100-DMA (~$83) on above average volume.
The next level of support is at the rising 200-DMA (~$77), which coincides with the January lows. Quantitative metrics are weakening,
with an Acc/Dist Rating of D- along with an RS line that has steadily declined off February highs. Multiple leaders – CRWD,
FICO, NOW, SNPS – have broken below their respective 100-DMA and are testing the next level of support. Nine of 11 software
groups in the O’Neil 197, have declined in group rank over the last four weeks with Security (#97), Design (#148), and Medical (#167)
showing the sharpest decline. We recommend a risk off approach to the IGV and its constituents as the index has breached key
moving average supports. Trim weak ideas breaching logical levels of support on declining relative strength.
Please refer to the attached PDF for the full report.
