US Focus Long

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to move into higher highs, constructively building on last week’s breakout. Leadership continues to act well while distribution remains at just two days on each index. Additionally, one distribution day will expire on the Nasdaq next week. We remain positive on the general market.

European Focus Long

A disappointing jobs report from the U.S. did not prevent European markets from closing higher on Friday, concluding the week up 0.2% on average. ECB President Mario Draghi’s dovish comments earlier in the week were the main catalyst. Denmark and Germany led, gaining 2.3% and 1.8%, respectively. Despite distribution days increasing this week across Europe, Norway (-1.4%) is the only country not in a Confirmed Uptrend.

US Focus Long

The U.S. market has been moved back into a Confirmed Uptrend. The S&P 500 broke into new highs Thursday after consolidating since March 1. Volume has been below average likely due to the holiday weekend, however, price action has been strong and leadership continues to act very well. Distribution also fell this week to just two days on the S&P 500. We will be looking for the rising 21-DMA to act as a shorter-term level of support should the market pull back.

European Focus Long

European markets rebounded 0.4% on average after two consecutive weeks of losses. Encouraging economic news and a strong rally in the U.S. propelled markets higher. The U.K. gained 1% to reach a new high as it continued to shed distribution days, now down to only two. France (+0.2%) and Germany (-0.3%) underperformed but remain in a Confirmed Uptrend and are consolidating near 52-week highs. Luxembourg (+2.5%) was the best performing market and was moved to a Confirmed Uptrend after a follow-through day.

US Focus Long

The U.S. market was downgraded to Uptrend Under Pressure after Wednesday’s broad based sell-off, which caused indices to slice through their respective 50-DMA. However, leadership ideas, particularly across Technology, have bounced back in strong fashion. Going forward, we would like to see the S&P 500 and Russell regain and hold above their 50-DMA while stocks consolidate into areas of price or moving average support. If this can happen while distribution remains low, we will likely move the U.S. market back into a Confirmed Uptrend in the near future.

European Focus Long

A strong Friday rally helped trim losses for the week; nevertheless, European markets closed 0.5% lower on average. Distribution days were abundant on Wednesday and Thursday, but none of the markets were moved from a Confirmed Uptrend. Four markets closed higher, including the U.K. (+0.5%), while Germany (-1%) and France (-1.5%) underperformed but continue to trade well above their moving averages.