Author: Raj Gupta
Market View
The U.S. market has been downgraded to a Downtrend. The S&P 500 added four distribution days over five ses-
sions, resulting in its first break of the 50-DMA since November. Despite a snapback rally on Friday, the index
now faces multiple layers of resistance including its rolling 21-DMA (3,855). Near-term support is now ~3,700,
which may coincide with the rising 100-DMA. The support range below the 100-DMA is 3,500–3,600, the top of
the prior Q4 consolidation, which may coincide with the rising 200-DMA. The Nasdaq also broke its 50-DMA
this week in rising distribution. This index added back-to-back distribution days on Wednesday and Thursday,
resulting in a 10% decline off highs to near-term support at its 100-DMA (~12,600). Should this level break,
the next level is ~12,000, which may coincide with the rising 200-DMA.
Global Laggards
Highlighted Charts
U.S.: Novagold Resources (NG), R P M International (RPM), Fifty One Job Inc Ads (JOBS), Carters (CRI), S B A Communications (SBAC), Henry Schein (HSIC), Papa John’s (PZZA), Cable One Inc (CABO), Ansys (ANSS), Zoom (ZM), Appfolio (APPF).
O’Neil Health Care Weekly
Market View
he U.S. market remains is in an Uptrend Under Pressure. The S&P 500 and Nasdaq pulled back to their respective 50-DMA in volatile action this week. Support below this major moving average is ~3,700 on the S&P 500, which is near the January 29 low and the rising 100-DMA. Support below the 50-DMA for the Nasdaq is between 12,900 and 13,000, an area that held twice in January. The distribution day count stands at five each with two expiring on the S&P 500 and one on the Nasdaq next week.
O’Neil Health Care Weekly
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back slightly this week but
held above support at the 10-DMA (S&P 500: 3,905) and 21-DMA (Nasdaq:13,720), respectively. The distribu-
tion day count stands at four and three days, respectively, with one day expiring on the S&P 500 next week.
O’Neil Health Care Weekly
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq built on last week’s strong gains,
moving further into all-time highs this week. Near-term support remains the rising 10- and 21-DMA (S&P 500:
3,848; Nasdaq: 13,610). The distribution day count remains relatively low at five and two, respectively, with one
day expiring on the S&P 500 next week.
O’Neil Health Care Weekly
XLV’s RS line (vs S&P 500) hit its lowest level in one-year following a strong rebound in the S&P 500 last
week. XLV is the third worst performing sector ETF over the last three and six months.