Tag: Confirmed Uptrend

Market View

Posted on by Raj Gupta

U.S. Market

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back to their respective 21-DMA
after making new all-time highs earlier in the week. Distribution did rise over the last several sessions, though
one day will expire on both indices next week. We will likely shift the market status back to an Uptrend Under
Pressure should indices close below the 21-DMA in the coming days. The next level of support below the 21-
DMA is the 50-DMA (S&P 500: 3,274, -1.9%; Nasdaq: 9,228, -3.8%).

Nine of 11 sectors, 110 of 197 industry groups, and 56% of S&P 500 stocks are trading above their respective
50-DMA.Technology and Consumer Cyclical pulled back sharply Friday, falling 2.3% and 1.6%, respectively.
Health Care, Consumer Staple, and Utility closed relatively flat on the session. The best performing industry
groups over the last several sessions include Mining ( PAAS ), Reits ( DLR ), Utilities ( PNW ), Building Products/Services ( DOOR ), Home Builders ( LGIH ), and Pharmaceuticals ( ABBV ). The worst performing groups include Semiconductors ( COHR ), Software (ZS ), Toys ( HAS ), Travel Booking ( BKNG ), and Oil & Gas ( DVN ).

China A Shares

Posted on by Sandeeep N

The CSI 300 rose 4% on much higher volume this week. We upgraded the market to a Confirmed Uptrend from a Rally Attempt on February 17 as it registered a follow-through day. Major stock indexes rose as Chinese authorities launched new stimulus measures to steady the economy and curtail the impact of the coronavirus outbreak. Investors’ risk preference has improved on China’s strong credit growth in January and the expectation of more stimulus measures. Technology stocks continue to outperform, driving the tech-heavy ChiNext index to three-year highs. The CSI 300 retook its 50-DMA on high volume and hit new rally highs. As momentum has remained strong since February 3, we expect increased pullback pressure on the market. Investors are advised to stay patient and avoid chasing extended ideas. Select leading names that are trading constructively within a buy area. We see the CSI 300’s the next resistance near January highs of 4,200 and next support at the 50-DMA (~4,000) in the near term.

US Focus

Posted on by Sandeeep N

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back to their respective 21-DMA after making new all-time highs earlier in the week. Distribution did rise over the last several sessions, though one day will expire on both indices next week. We will likely shift the market status back to Uptrend Under Pressure should indices close below the 21-DMA in the coming days. The next level of support below the 21-DMA is the 50-DMA (S&P 500: 3,274 (-1.9%); Nasdaq: 9,228 (-3.8%).

Market View

Posted on by Raj Gupta

U.S. Market

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend into higher highs,
above all major moving averages. Near-term support remains the rising 10- and 21-DMA. Distribution stands at
three days each with one day expiring on the Nasdaq next week.
Nine of 11 sectors, 117 of 197 industry groups, and 66% of S&P 500 stocks are trading above their respective
50-DMA. Eight sectors rose 1% or more this week, led by Retail, Utility, Technology and Consumer Cyclical
which rallied ~2% each. The best performing industry groups over the last several sessions include Solar (RUN),
Telecom (TMUS), Wholesale Drugs (MCK), Managed Care (UNH), Semiconductors (NVDA), and Software (AYX).
The worst performing groups include Coal (CNX), Oil & Gas (MRO), Auto Parts (GT), and Computer Networking
(ANET).

US Focus

Posted on by Sandeeep N

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend into higher highs, above all major moving averages. Near-term support remains the rising 10- and 21- DMA. Distribution stands at three days each with one day expiring on the Nasdaq next week.

European Focus

Posted on by Sandeeep N

On Thursday, the Stoxx 600 ended the day 2% above last Friday’s close and remained in a Confirmed Uptrend. Of the 17 indices we cover, 13 are in a Confirmed Uptrend, three are in an Uptrend Under Pressure, and one in a Rally Attempt.

Market View

Posted on by Raj Gupta

U.S. Market

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq staged downside reversals Friday,
closing at their respective 10-DMA. Distribution rose on the Nasdaq to three days, matching the S&P 500. We
are now looking for indices to find support at their respective 21-DMA (S&P 500: 3,271; Nasdaq: 9,179) should
weakness persist early next week. We will likely shift the market status to Uptrend Under Pressure should this
level break as the next level of support is the 50-DMA, which is 3–5% below current levels.
Breadth is beginning to narrow. Nine of 11 sectors, 155 of 197 industry groups, and 64% of S&P 500 stocks are
trading above their respective 50-DMA. This is down from all 11 sectors, 173 of 197 industry groups, and 82%
of S&P 500 stocks last week. Energy and Basic Material remain the two weakest sectors, while extended sectors
such as Technology and Heath Care staged downside reversals off all-time highs to close the week.

US Focus

Posted on by Saminathan Jaganathan

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq staged downside reversals Friday, closing at their respective 10-DMA. Distribution rose to four and three days, respectively. We are now looking for indices to find support at their respective 21-DMA (S&P 500: 3,271; Nasdaq: 9,179) should weakness persist early next week. We will likely shift the market status to Uptrend Under Pressure should this level break as the next level of support is the 50-DMA, which is 3-5% below current levels.