Twenty-three developed markets gained 2.5% on average and 20 are in a Confirmed Uptrend, the 38th week with a majority. Twenty-three emerging markets gained 1.4% on average and 16 markets are in a Confirmed Uptrend, the 19th week with a majority.
Tag: Confirmed Uptrend
Retail Sector Gains Steam in the U.S. and Japan
Twenty-three developed markets lost 0.3% on average and 19 are in a Confirmed Uptrend, the 37th week with a majority. Twenty-three emerging markets lost 0.1% on average and 16 markets are in a Confirmed Uptrend, the 18th week with a majority.
US Focus Long
The market status remain Uptrend Under Pressure. There are six distribution days on the S&P 500 with one set to fall off next week. There are three distribution days on the Nasdaq with one also set to expire next week. Though the major averages have been unable to rally above resistance, leadership continues to act well. Multiple ideas are making new highs and there have been few major technical breakdowns among leading names. However, we are waiting for the S&P 500 to clear above its downward trending upper channel line and for the Nasdaq to reach new highs before shifting the market back into a Confirm Uptrend
European Focus Long
Due to sharp fall on Tuesday where the Stoxx Europe 600 index lost 1.11%, it is headed toward a loss for the week. Tuesday’s fall came after U.K. Prime Minister Theresa May called for a snap general election this year, resulting in a sharp rally of the pound against the U.S. dollar. This week we downgraded the market status of the U.K., Italy, Switzerland, and the Czech Republic to Uptrend Under Pressure from Confirmed Uptrend. We also moved Norway from Rally Attempt to a Confirmed Downtrend.
Distribution Rising Slightly, Breakouts Decrease Globally
Twenty-three developed markets lost 0.5% on average and 18 are in a Confirmed Uptrend, the 36th week with a majority. Twenty-three emerging markets lost 0.3% on average and 16 markets are in a Confirmed Uptrend, the 17th week with a majority.
US Focus Long
The market status remains Uptrend Under Pressure. Distribution remains relatively low on both the S&P and Nasdaq, however, no days will expire next week. Further, the S&P 500 and Nasdaq are now both trading below their respective 50-DMAAs for the first time since the election. Leadership, for the most part, has held in well, though multiple ideas have pulled back into their respective bases after breaking out over the last few weeks. This warrents a caution approach until we see support come back into the market. We will be looking for 2300, or the 100-DMA, to new act as support on the S&P 500.
European Focus Long
Geopolitical concerns dominated news this week, sending European markets down 0.6% on average. Four Scandinavian countries – Denmark (+1.7%), Finland (+0.7%), Norway (+0.6%), and Sweden (+0.2%) – gained, while all other markets were flat or decreased. The major markets of France, Germany, and Italy underperformed, declining 1.2%, 0.9%, and 2.6%, respectively; the U.K. fell 0.3%. All four markets remain in Confirmed Uptrend.
Emerging Outperforms, Global Sector Signals Still Generally Positive
Twenty-three developed markets gained 0.2% on average and 19 are in a Confirmed Uptrend, the 35th week with a majority. Twenty-three emerging markets gained 1.1% on average and 16 markets are in a Confirmed Uptrend, the 16th week with a majority.
US Focus Long
The market status remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq continue to hold above their respctive 50-DMAs,but have been unable to clear resistance Distribution now stands at four days on the S&P 500 and three on the Nasdaq.one additional day is set to expire on the Nasdaq Monday and on the S&P 500 Tuesday.Leadership outside of Banks continues to hold up well,with several making new highs in the face of market pressure.We view this as constructive internal action,but still need to see the S&P 500 clear above 2390 before moving the market back into a confirmed uptrend
European Focus Long
The start of Q2 resulted in a mild gain of 0.2% on average, despite a weak U.S. jobs report and military action by the U.S. in Syria. During the week, Denmark was moved into a Confirmed Uptrend after a follow-through day and Sweden fell to Under Pressure. Only two countries – Austria (+2.8%) and Luxembourg (+1.1%) – gained more than 1%. Sweden (-1.1%) was the sole country to lose more than 1%. The key markets of the U.K. and France gained 0.4% and 0.2%, respectively, while Germany lost 0.7%; all three remain in a Confirmed Uptrend.
