The U.S. market remains in a Confirmed Uptrend. The market status will shift to an Uptrend Under Pressure should either index close
below the follow-through day lows (S&P 500: 4,414; Nasdaq: 13,767). Thus far, there are multiple indications that this rally may fail given
no progress above key moving average resistance and multiple distribution days occurring within just two weeks of the follow-through.
Distribution now stands at two and three, respectively.
Author: admin
WON Europe Today
On Friday,
- European markets had another weak day as most markets failed to reclaim their key support levels. Overall, the
market has been very weak since its follow-through day on February 9. We recommend that investors be very
cautious while adding new risks and book profits in names with technical deterioration. - The Stoxx 600 found support at its 200-DMA after failing to reclaim its 50-DMA. Almost all sectors closed in
negative territory, with Technology sliding more than 2%. Banks lost half a percent. - Among other major indices, France’s CAC broke below its 50-DMA, narrowly avoiding a distribution day. Germany’s
DAX recorded its first distribution day, breaking below its 200-DMA. The U.K.’s FTSE 100 continues to rise along its
rising 10-DMA. - Among the 17 indices that we track in Europe, Norway closed in positive territory. Actionable names in the Focus
List include San Lorenzo (SANL.IT; SL:IM), Compass Group (CPG.GB; CPG:LN), Vinci (DG@F.FR; DG:FP),
Jeronimo Martins (JMT.PT; JMT:PL), and Beneteau (CHBE.FR; BEN:FP).
WON Europe Today
Yesterday,
- European markets had a strong day with many indices recording a follow-through day. However, we continue to
recommend that investors remain cautious as there are multiple levels of resistance above the current levels.
The Stoxx 600 had a follow-through day yesterday, gaining 1.7% on good volume. The index managed to close
above its 200-DMA. Most sectors closed in the green with Autos gaining 4% and Construction & Material advancing
more than 2.5%. - Among other major indices, France’s CAC managed to reclaim its 50-DMA but on low volume. Germany’s DAX
also had a follow-through day and was upgraded to a Confirmed Uptrend. The U.K.’s FTSE 100 managed to close
above its January 2022 highs and near its pre-pandemic highs. - All the 17 indices that we track in Europe closed in positive territory. Following Spain on Tuesday, the Stoxx 600,
Germany, the Netherlands, Sweden, and Switzerland had follow-through days and have been upgraded to a
Confirmed Uptrend. Austria was also upgraded to a Confirmed Uptrend after the index traded above its prior high.
Actionable names in the Focus List include Compass Group (CPG.GB; CPG:LN),Vinci (DG@F.FR; DG:FP),
Jeronimo Martins (JMT.PT; JMT:PL),and Beneteau (CHBE.FR; BEN:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. Indices gapped higher on below average volume. The S&P 500 regained its 100-
DMA (4,571) but remains 1% below 50-DMA (4,611) resistance. The Nasdaq closed slightly above last week’s follow-through day but still
faces resistance at its 200-DMA (14,737).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to hold above 200-DMA support (4,447) and below 50-DMA
resistance (4,613). The Nasdaq, like the S&P 500, has traded in a relatively flat range over the last week, holding above the follow-through
day low (13,767). Thus far, no progress has been made since the follow-through.
WON Europe Today
Yesterday,
- European markets gave up their initial gains to close flat. Most of the indices are trading below their key moving
averages and support levels. We recommend that investors be careful while adding any new risk and book profits
in extended names. - The Stoxx 600 continues to face resistance at its 200-DMA. It continues to hold above 460 level and is awaiting a
follow-through day. Among sectors, Technology stocks lost 0.9% while Basic Resources advanced more than 2%.
Among the other major indices, France’s CAC is facing resistance at its 50-DMA, Germany’s DAX continues to
face supply at 15,200 level while the U.K. FTSE 100 is facing resistance at 7,600 level. - Among the 17 major indices that we track, Europe, Denmark, Finland, Ireland, Norway, Sweden, Switzerland, and
the U.K. closed in negative territory. Denmark recorded its second distribution day. - New Focus List addition Vinci (DG@F.FR; DG:FP) is actionable. Other actionable names in the Focus List include
Compass Group (CPG.GB; CPG:LN), Jeronimo Martins (JMT.PT; JMT:PL),and Beneteau (CHBE.FR; BEN:FP).
WON Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
The Stoxx 600 has remained in a Rally Attempt as it was able to hold above its recent low of 454.52. The index
tested its 50-DMA on Wednesday before retracing back to its 200-DMA.
Our rotation chart shows short-term momentum (over four weeks) continuing to improve in Energy, Financial, and
Transportation. Technology, Health Care, Retail, and Capital Goods continue to show weak trends in their shortterm momentum (over four weeks).
improve in Energy, Financial, and Transportation. Technology, Health Care, Retail, and Capital Goods continue to
show weak trends in their short-term momentum (over four weeks).
We did not make any change to the list last week. The list currently consists of 23 stocks, over weighted toward
Financials and Capital Equipment.
Won Global View
The U.S. market remains in a Confirmed Uptrend. Indices are consolidating in a wide range after last week’s follow-through day. The
S&P 500 is 3% below resistance at its declining 50-DMA (4,614) but 1% above support at its 200-DMA (4,445). The Nasdaq pulled back
on slightly higher volume and picked up a distribution day in the process. Overall the Nasdaq remains 5% below its 200-DMA (14,735) but
still trading above the January 31st follow-through day low (13,767).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped down, closing at lows and erasing much of the
progress post follow-through day this week. We will now be looking for Monday’s lows (S&P 500: 4,414; Nasdaq: 13,767) to hold as
support, or the follow-through day will be at risk of failing. Despite yesterday’s severe price decline, distribution was avoided and remains
at zero.
WON Europe Today
We released our Weekly Global Laggards Report yesterday. Click here to access the report. Key points from it include:
The stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be
under weighted as they may be vulnerable to further downside risk and underperformance. European names highlighted
this week include Edenred (EDEN.FR; EDEN:FP), Tag Immobilien (TEGX.DE; TEG:GR), Pao Novatek (NVTK.GB;
NVTK:LI), UCB (UCB.BE; UCB:BB), and Inditex (IND.ES; ITX:SM).
