The market remains in a Confirmed Uptrend, with three distribution days on the S&P 500 and Nasdaq. The total count remains low, though no distribution days will expire for over two weeks. The S&P 500 and Nasdaq are each holding support along their respective 21-DMAs as leadership ideas continue to surface. Removals from the list were largely isolated to one group. Therefore, we remain positive on the general market as long as these short-term levels of support continue to hold, and distribution remains under control.
Tag: Confirmed Uptrend
European Focus Long
A couple of down sessions to begin the week did not have much of an impact as the iShares Stoxx Europe 600 headed for a flat week by Friday afternoon. Two markets, Spain (+2.03%) and Belgium (1.13%), gained more than 1%. On Thursday, Belgium was changed from Uptrend Under Pressure to Confirmed Uptrend after the index made a new 52-week high. Denmark fared the worst this week, losing 1.62%. On Tuesday, it changed from Confirmed Uptrend to Uptrend Under Pressure after the index recorded its fifth distribution day. Before Friday’s trading, 12 out of 18 European indices were in a Confirmed Uptrend. France and Germany remain at 52-week highs while the U.K. is 1% off the level.
US Focus Long
Thanks to a sharp 1.62% gain on Wednesday, the iShares Stoxx Europe 600 index was heading toward a weekly gain of almost 1.2% by Friday afternoon. The index is at its highest level since December 2015 and remains in a Confirmed Uptrend. Before Friday’s close, ten out of 16 indices were in a Confirmed Uptrend. As of Thursday, Italy was by far the strongest performer (+4.54%), followed by Ireland (+2.93%) and Spain (+2.78%).
European Focus Long
Thanks to a sharp 1.62% gain on Wednesday, the iShares Stoxx Europe 600 index was heading toward a weekly gain of almost 1.2% by Friday afternoon. The index is at its highest level since December 2015 and remains in a Confirmed Uptrend. Before Friday’s close, ten out of 16 indices were in a Confirmed Uptrend. As of Thursday, Italy was by far the strongest performer (+4.54%), followed by Ireland (+2.93%) and Spain (+2.78%).
US Focus Long
The market has begun to consolidate gains that we have seen over the last several weeks. We are looking for distribution to stay low, for price to hold above support levels, and for leadership to consolidate constructively above moving average support. Should the market pullback, we will be looking for the 21-DMA on both the S&P 500 and Nasdaq to hold. This level has been tested numerous times since the election and will likely be the market’s first test before the 50-DMA. We remain in a Confirmed Uptrend, still with only one distribution day on the S&P 500 and two on the Nasdaq.
European Focus Long
A sharp pullback of 0.9% on average Friday ended European markets’ streak of weekly gains. Only two markets, Germany (+0.4%) and Switzerland (+0.2%), gained, and Sweden was flat to lead. Italy fared worst, losing 2.2%. Other markets to lose 1% or more include Austria (-1.6%), Belgium (-1%), and Luxembourg (-1.1%). Before Friday’s trading, 11 of 16 markets were in a Confirmed Uptrend.
US Focus Long
The market remains in a Confirmed Uptrend, likely set to consolidate gains we have seen over the past month. We are looking for short-term levels of support to hold, including the 21- DMA, while distribution remains muted. Leadership has continued to act well with very few technical breakdowns. This too, will be key going forward. We lose one distribution day on both the S&P 500 and Nasdaq after the close on Tuesday.
European Focus Long
Many European markets paused towards the end of the week as they approached their 52-week highs, although they still managed to gain 0.7% on average, for the second consecutive week. All the markets gained except Norway, which closed down 1.4%. Four markets – the Netherlands (+1.9%), Austria (+1.4%), Spain (+1.4%), and Denmark (+1%) – gained 1% or more. Germany, France, and the U.K. gained 0.8%, 0.8%, and 0.6%, respectively. Currently, 12 of 16 markets are in a Confirmed Uptrend.
US Focus Long
The market remains in a Confirmed Uptrend with a limited amount of distribution days. Leadership continues to emerge largely due to positive reactions to earnings. Though the upper channel line was reached on the S&P 500 Friday, market conditions remain favorable for further gains. We are watching for sudden downside reversals in the major averages, coupled with failed breakouts in individual ideas. This would be an early indication to turn cautious. Until then, our positive stance on the general market continues.
US Focus Long
U.S. indices broke into all-time highs this week, gapping up Wednesday after consolidating
over the last several weeks. We are looking for the major averages to consolidate at current
levels, avoiding distribution while leadership continues to work itself higher. Distribution
currently stands at four days on the S&P 500 and five on the Nasdaq. One day is set to expire
on the S&P next week, while two days will fall off on the Nasdaq
