The Stoxx 600 recovered some of the losses it took last week. As of Thursday, it had a gain of 0.87%, compared with a loss of 1.26% the prior week. The current distribution day count is down to six after two dropped off due to time this week. Additionally, we moved Switzerland back to a Confirmed Uptrend this week. However, we continue to have a cautious approach to European equities since the Stoxx 600 has so far failed to hold above its 50- and 200-DMA.
Tag: Confirmed Uptrend
Global Sector Commentary
Twenty-two developed markets fell 1.2% on average, declining for a second week after seven weeks of gains. Twenty-one are in a Confirmed Uptrend, but we now have majority (14) classified as Under Pressure. Distribution day counts rose to 4.2 on average
US Focus Long
The U.S. market is in a Confirmed Uptrend. Indices, led by the Nasdaq, rallied back into alltime highs despite a rise in distribution. Although the distribution day count increased to six on the Nasdaq and five on the S&P, price action across leadership ideas remains constructive. We will become more cautious if distribution remains elevated as indices/leading stocks fall below key support levels.
US Focus Long
The U.S. market is in a Confirmed Uptrend. Though distribution rose this week to two and five days on the S&P 500 and Nasdaq, respectively, each index continues to hold short-term support at the 21-DMA. Leadership also remains healthy with 80% of the U.S. Focus List still trading above the 50-DMA and 60% within 5% of a new high. We will become more cautious should we see a further rise in distribution that takes the major averages below their respective 21-DMAs.
US Focus Long
The U.S. market is in a Confirmed Uptrend. Indices tacked on small gains this week and continue to trend higher along their 21-DMAs as distribution remains low. Earnings season has been strong for the USFL with the majority of ideas reporting better-than-expected results. We remain positive on the general market as we head into the final weeks of earnings season.
US Focus Long
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq moved back into new highs Friday after finding support around their respective 21-DMAs. Distribution days remain low with one on the S&P 500 and three on the Nasdaq. Leadership also remains strong with the majority of ideas continuing into new highs post earnings results. We remain positive on the general market.
US Focus Long
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to show resilient action, staging upside reversals on Thursday and continuing into all-time highs to close the week. The Nasdaq did pick up one distribution day, but the count still remains very low at just one day on the S&P 500 and two on the Nasdaq. Leadership has been very strong, with multiple U.S. Focus List ideas gapping up into all-time highs post earnings. We remain positive on the general market.
European Focus Long
In the week up to Thursday, the Stoxx 600 lost 0.59% and recorded two distribution days. Thursday was particularly weak in Europe, with nine out of the 16 developed market indices recording a distribution day. These indices included major markets such as France, Germany, the U.K., and Switzerland. The sharpest declines came from Austria and Italy, which lost close to 1%. Spain, which remains the weakest European market from a technical standpoint, gained two additional distribution days this week, and is in an Uptrend Under Pressure.
Market View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade at all-time highs with only one distribution day each. Leadership continues to broaden with five of 11 O’Neil sectors hitting a new high this week. We remain positive on the general market.
Stocks on our U.S. Focus List—Current Sentiment.
By Sector
Strength across the USFL came primarily from Technology. Semiconductors continue to grind higher with new highs this week in NVDA, MPWR, CY, AMAT, ON, and MCHP. AVGO is still lagging the group, despite retaking its 50-DMA. We are looking for the stock to break above $260 before adding to positions. Financial ideas within the USFL were also under accumulation this week. GPN, PYPL, and QTWO all hit new highs, and ESNT broke out of a flat base on Friday.
US Focus Long
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade at all-time highs with only one distribution day each. Leadership continues to broaden with five of 11 O’Neil sectors hitting a new high this week. We remain positive on the general market.
