U.S. Market
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq staged downside reversals Friday,
closing at their respective 10-DMA. Distribution rose on the Nasdaq to three days, matching the S&P 500. We
are now looking for indices to find support at their respective 21-DMA (S&P 500: 3,271; Nasdaq: 9,179) should
weakness persist early next week. We will likely shift the market status to Uptrend Under Pressure should this
level break as the next level of support is the 50-DMA, which is 3–5% below current levels.
Breadth is beginning to narrow. Nine of 11 sectors, 155 of 197 industry groups, and 64% of S&P 500 stocks are
trading above their respective 50-DMA. This is down from all 11 sectors, 173 of 197 industry groups, and 82%
of S&P 500 stocks last week. Energy and Basic Material remain the two weakest sectors, while extended sectors
such as Technology and Heath Care staged downside reversals off all-time highs to close the week.