The U.S. market remains in a Confirmed Uptrend. Indices pulled back on lower volume than the prior session after accelerating higher earlier in the week. Look for the S&P 500 and Nasdaq to consolidate along February highs (S&P 500:4,595, Nasdaq: 14,509) and allow the rapidly rising 10- and 21-DMA to catch up to price and serve as support. The S&P 500 and Nasdaq avoided a distribution day as the count remains at zero on each index.
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Won Europe Today
Yesterday,
- European markets had stalling action as indices continue to face resistance at their key moving averages/price
levels. We continue to recommend that investors be cautious and selective while adding any new risk. - The Stoxx 600 continues to face resistance at 460 price levels. The index is 7% below its January 4 highs. Sectors
including Autos, which had been performing well in the last few sessions, were down, while Oil & Gas stocks
surged 3% on apprehensions that Russia might not cut back its military activity in Ukraine. - Among other major indices, France’s CAC is finding resistance at its 200-DMA, Germany’s DAX at its 50-DMA, and
the U.K.’s FTSE 100 at 7,600 price level. - Among the 17 major indices that we track in Europe, the U.K., Norway, Portugal, Belgium, and Denmark closed in
positive territory. Actionable names in the Focus List include Sonova N (SOON.CH; SOON:SW), Vantage Towers
(VTWRX.DE; VTWR:GR), Novo Nordisk (NON.DK; NOVOB:DC), Salmar (SALM.NO; SALM:NO), and Aker Bp
(AKEP.NO; AKRBP:NO).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq cleared above February highs yesterday, continuing to press higher with no distribution. The S&P 500 is now just 4% off all-time high resistance (4,818), while the Nasdaq is now 10% off highs and just below resistance at its 200-DMA (14,727).
Won Europe Today
Yesterday,
- European markets had a very strong day as some of the major indices retook their key resistance levels on strong
volume. However, we continue to remain cautious and recommend investors to be selective while adding any new
risk. - The Stoxx 600 closed above its 50-DMA on high volume and is finding resistance at 462 price levels. The index is
1% below its 200-DMA. Among sectors, Autos gained 6%, while Oil & Gas and Basic Resources lagged. - Among other major indices, France’s CAC managed to close above its 200-DMA, Germany’s DAX regained its 50-
DMA, while the U.K.’s FTSE continues to find resistance along 7,550 price levels. - Among the 17 indices that we track in Europe, only Norway closed in the red, recording its fifth distribution day.
New Focus List addition Sonova N (SOON.CH; SOON:SW) is actionable. Other actionable names in the Focus
List Vantage Towers (VTWRX.DE; VTWR:GR), Novo Nordisk (NON.DK; NOVOB:DC), Salmar (SALM.NO;
SALM:NO), and Aker Bp (AKEP.NO; AKRBP:NO).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to rally above moving average support, including the 200-DMA (4,478) on the S&P 500 and the 50-DMA (13,761) on the Nasdaq. The next level of resistance is at the February highs (S&P 500: 4,595; Nasdaq: 14,509), followed by the 200-DMA (14,724) on the Nasdaq.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- It was a mixed week for European markets. Surging energy prices amid inflationary concerns and the U.S. Federal
Reserve’s hawkish commentary to combat inflation weighed on the market. - The Stoxx 600 remains in a Confirmed Uptrend but is finding resistance at its declining 50-DMA. Thus, we maintain
a cautious view on the overall market and continue to recommend a patient approach to adding risk. - Rotation Chart Materials, Energy, and Health Care showed improving short-term momentum (over four weeks).
Financial, Retail, and Consumer Cyclical stocks continue to show weak trends in short-term momentum (over four
weeks).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq have continued to push higher post follow-through, remaining above 50-DMA support (S&P 500: 4,413; Nasdaq: 13,771) with no distribution. Both indices now face resistance at February highs (S&P 500: 4,595; Nasdaq: 14,509), with the Nasdaq also still below its 200-DMA (14,723).
Won Europe Today
On Friday,
- European markets continue to lag after the outside reversal, though on low volume, experienced by most major
indices on March 23. We continue to be very cautious on the markets as there are multiple levels of resistance to
clear and recommend investors to be extremely patient and selective while adding risk coming out of proper bases.
The Stoxx 600 formed a downside reversal after finding supply at its declining 50-DMA though on low volume. - Among sectors, Real Estate and Oil & Gas led the bulls gaining more than 1%, while Industrial Goods, Banks, and
Construction stocks lagged. - Among other major indices, France’s CAC’s 50-DMA crossed below its 200-DMA, Germany’s DAX continues to
find support between 14,250–14,300 price level, and the U.K.’s FTSE continues to hold above its 50-DMA.
Among the 17 indices that we track in Europe, Denmark, Finland, France, Ireland, Sweden, and Switzerland closed
in negative territory, with Finland recording its first distribution day. - Actionable names in the Focus List include Vantage Towers (VTWRX.DE; VTWR:GR), Novo Nordisk (NON.DK;
NOVOB:DC), AstraZeneca (AZN.GB; AZN:LN), Salmar (SALM.NO; SALM:NO), Aker Bp (AKEP.NO; AKRBP:NO),
and Jeronimo Martins (JMT.PT; JMT:PL).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to steadily progress higher post last week’s follow-through, remaining above key moving average support with no distribution. The next level of resistance is February highs of 4,595. The Nasdaq held 50-DMA support before also pushing back to weekly highs. The next level of resistance is also February highs of 14,509 before the 200-DMA (14,722).
Won Europe Today
We released our Weekly Global Laggards Report today. Click here to access the report. The stocks highlighted in this
report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be
vulnerable to further downside risk and underperformance. European names highlighted this week include Holcim
(HOLN.CH; HOLN:SW), WPP (WPP.GB; WPP:LN), Vonovia (VNAX.DE; VNA:GR), Whitbread (WTB.GB; WTB:LN),
Hermes (RMS.FR; RMS:FP), Getinge B (GIND.SE; GETIB:SS), The Swatch Group (UHRN.CH; UHRN:SW), Deutsche
Post (Xet) (DPWX.DE; DPW:GR), and Ryanair Holdings (RYA.IE; RYA:ID).
