The U.S. market is in a Confirmed Uptrend. The S&P 500 is now touching resistance at its 200-DMA, while the Nasdaq is trading 60bps below that level. Six of 11 O’Neil sectors are now trading above their respective 200-DMA, with Capital Equipment, Technology, and Transportation regaining that level yesterday. Breakouts continue to increase, and leading ideas remain healthy. We maintain our positive view on the general market.
Author: Anuj Kumar Chouhan
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to consolidate constructively below resistance along their respective 200-DMA. Distribution remains at two days on the S&P 500 and one on the Nasdaq. All 11 O’Neil sectors remain above their respective 50-DMA. Leadership remains healthy, with new ideas across multiple industry groups making new highs each session. We remain positive on the general market.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq are consolidating constructively below resistance along their respective 200-DMA. Distribution stands at two days on the S&P 500 and one on the Nasdaq. Five sectors have rallied more than 10% since the January 4 follow-through day with all 11 trading above their respective 50-DMA. Leadership continues to act well with multiple breakouts occurring each week. To remain constructive, we would like to see the major averages avoid a clustering of distribution and for leadership to continue to broaden. We maintain our positive view on the general market.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq declined ~1% on volume greater than the prior day as each index picked up a distribution day in the process. Despite the sell-off, the majority of leading stocks pulled back in constructive fashion. To maintain a positive outlook, indices need to avoid a clustering of distribution days. Currently, the distribution day count remains low with only two days on the S&P 500 and one on the Nasdaq.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back off on below average volume and thus avoided a distribution day. Indices continue to face resistance along the 200-DMA, however, price action remains constructive.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq closed higher on below average volume and are sitting just below resistance at the 200-DMA (S&P 500: 2,741 (+0.1%); Nasdaq: 7,454 (+0.7%)). A low volume consolidation along the 200-DMA would be viewed as constructive as we would prefer to avoid any high-volume pullbacks off the 200-DMA.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq closed above their respective 100-DMA, and the next level of resistance is the 200-DMA (S&P 500: 2,741 (+0.9%); Nasdaq: 7,453 (+1.7%)). There remains little to no distribution and leading ideas continue to act well. We maintain our positive view on the general market.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied strongly last week and are now sitting just below their respective 100-DMA (S&P 500: 2,710 (+0.2%); Nasdaq: 7,281 (+0.2%)). We expect consolidation around current levels given the sharp rally into this next level of moving-average resistance. Look for the major averages to avoid any clustering of distribution and for leading ideas to remain technically intact. The rising 21-DMA may serve as support should a pullback occur. The next level of resistance above the 100-DMA is the 200-DMA (S&P 500: 2,741 (+1.3%); Nasdaq: 7,453 (+2.5%)). We continue to recommend buying quality high-relative-strength ideas as they emerge from consolidation.
WON Europe Today
On Friday, most European markets closed in the green. Despite sluggish European macroeconomic data, the market closed higher on Friday mainly due to positive fourth-quarter results from companies, signs of China-U.S. trade war resolution, and positive jobs data from the U.S. Germany’s DAX, France’s CAC 40, and the U.K.’s FTSE 100 were up 0.07%, 0.53%, and 0.74%, respectively, on lower volume.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied up to their respective 100-DMA (S&P 500: 2,712 (+0.3%); Nasdaq: 7,288 (+0.1%)), which is now serving as near-term resistance. Should the indices clear above this level, the 200-DMA will be the next level of major resistance.
