Europe’s Stoxx 600 benchmark was relatively quiet this week, with
three consecutive trading days where the index closed almost flat.
Thanks to a gain of 0.34% on Monday, the index was headed
toward a weekly gain of 0.36% as of Thursday’s close. Spain’s
market reacted positively to the developments in Catalonia, a
wealthy region that is demanding secession from the country.
Following the news on October 11 that the region will not secede
without talks with the Spanish Government, the Ibex 35 index
gained 1.34% for the day. The index remains in an Uptrend Under
Pressure. As of Thursday, we made no changes to the market status
of any index this week.
Tag: Confirmed Uptrend
Global Markets Broadly at 52-Week Highs
Twenty-three developed markets gained 0.7% on average. Fourteen are in a Confirmed Uptrend, the same as last week.
Market View
The U.S. market is in a Confirmed Uptrend. One of only two distribution days on the S&P 500 and Nasdaq wi expire at the close Monday. Leading ideas across all sectors continue to act well with multiple names hitting ne highs, breaking out of new bases, or bouncing off support levels. We remain positive on the general market. Stocks on our U.S. Focus List—Current Sentiment Our USFL of 69 ideas (two net weekly additions) gained 1.8% on average this week, outperforming the S&P 500 (1.2%) and the Nasdaq (1.5%).
By Sector
The rally continues to broaden with multiple sectors hitting new highs over the past week. Strength across the USFL came primarily from Software-related companies. ADSK, ALRM, NOW, PAYC, RHT, RNG, SSNC, and TTWO all hit fresh highs, while LOGM, RP, TYL, and WDAY all regained their respective 50-DMAs. Financials also led with ESNT, FRC, MS, PYPL, and SCHW all hitting new highs.
US Focus Long
The U.S. market is in a Confirmed Uptrend. One of only two distribution days on the S&P 500 and Nasdaq will expire at the close Monday. Leading ideas across all sectors continue to act well with multiple names hitting new highs, breaking out of new bases, or bouncing off support levels. We remain positive on the general market.
US Focus Long
The U.S. market remains in a Confirmed Uptrend. The Nasdaq and S&P 500 bounced back under heavy accumulation, after a minor sell-off to start the week, while the Russell 2000 jumped out of a nine-month consolidation. All indices broke out into all-time highs. Market strength is due to accumulation in Technology (Semis) and Transports and a re-emergence into Financials (Banks/Brokers). With the distribution day count falling to two days on the Nasdaq and S&P 500, we maintain a positive outlook as we head into Q4.
European Focus Long
This week through Thursday, the Stoxx 600 gained for six consecutive sessions and reached a fresh 10-week high. The pan- European benchmark’s strong performance can be attributed to banking sector, which was the best-performing sector this week, aided by the weakening of the Euro and optimism around the prospects of U.S. tax cuts and an interest rate hike. We moved Spain, Sweden, and Germany to a Confirmed Uptrend this week. Spain had a follow-through day after gaining 1.76%, while Sweden and Germany continued to show strength. We also moved Luxembourg to a Rally Attempt.
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq avoided distribution this week despite pulling back just slightly off their all-time highs. The distribution day count is now very low at just two days on the S&P 500 and one on the Nasdaq. We will be looking for the 21-DMA to act as support should the market pullback again next week. The majority of leadership ideas continue to act well, still holding above short-term support levels. Stocks on our U.S. Focus List—Current Sentiment. Our USFL of 66 ideas gained 0.2% on average this week, outperforming the S&P 500 (0%) and the Nasdaq (-0.3%).
By Sector
Financial outperformed this week with multiple U.S. Focus List ideas regaining their respective 50-DMAs. MS, FRC, and SCHW are all now forming the right side of their respective bases, but have yet to break above resistance and into new highs. The sector continues to be led by the credit card/payment processor industry group. PYPL continues to grind into higher highs, showing no signs of technical weakness. Transportation has been the best performing sector over the last few weeks with our lone idea, FDX, breaking out of a nine-week flat base on Wednesday. Technology was mixed. ADBE, AVGO, and GRUB undercut their respective 50-DMAs, while PAYC and TTWO continue to hit all-time highs. Semiconductor ideas, AMAT and NVDA, remain actionable after breaking out over the last few weeks.
US Focus Long
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq avoided distribution this week despite pulling back just slightly off their all-time highs. The distribution day count is now very low at just two days on the S&P 500 and one on the Nasdaq. We will be looking for the 21-DMA to act as support should the market pullback again next week. The majority of leadership ideas continue to act well, still holding above short-term support levels.
European Focus Long
The Stoxx 600 index remains in a Confirmed Uptrend and, as of Thursday, was up 0.57% on a weekly basis. This was despite relatively quiet trading on Tuesday and Wednesday ahead of the U.S. Federal Reserve’s monetary policy meeting. Countries that showed strength this week (as of Thursday’s closing prices) include Austria (+0.91%), Italy (+1.18%), Portugal (+2%), Denmark (+1.55%), Finland (+0.95%), Norway (+1.99%), and Switzerland (+1.18%). We moved the U.K. to a Rally Attempt this week and upgraded France to a Confirmed Uptrend after it continued to trend above its 100-DMA.
Market View
The U.S. market remains in a Confirmed Uptrend. Distribution fell to three days on the S&P 500 and just two days on the Nasdaq, with an additional day set to expire on both indexes next week. Leadership across multiple sectors continues to act well, with many ideas breaking out and hitting new highs. We remain positive on the general market. Stocks on our U.S. Focus List—Current Sentiment Our USFL of 65 ideas gained 0.4% on average this week, underperforming the S&P 500 (1.6%) and the Nasdaq (1.4%).
By Sector Technology, Retail, and Health Care ideas across the U.S. Focus list performed well this week. Within Technology, semiconductors are leading. MCHP and new idea ON both broke out from cup-with-handle bases and are both trading at all time highs. MPWR is back above its 50-DMA and is working on the right side of a new cup base. Within Retail, Internet names are outperforming. BABA broke out from an ascending base, and JD and AMZN both regained their respective 50-DMAs. Within Health Care, CELG, ALXN, ALGN, and ILMN are all trading at or near YTD highs.
