The U.S. market is in an Uptrend Under Pressure. After yesterday’s big upside reversal off support, indices re-main under accumulation. Regaining and holding above resistance at the 50-DMA will increase our confidence in the market. For now, we continue to advise a selective approach to buying, with a focus on high relative strength stocks, as both the Nasdaq and S&P 500 have an A/D Rating of E.
Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 71 ideas (one net removal) gained 1.3% on average this week, underperforming the S&P 500 (-0.2) and in line the Nasdaq (1.34%).
By Sector
Small cap Technology ideas on the U.S. Focus List outperformed due to strong earnings results from QTWO and RP. Both ideas are extended. MB is breaking out from a cup consolidation ahead of earnings next week. Pockets of Health Care remain strong as IDXX and ABMD broke out into all-time highs on bullish earnings results. IDXX is actionable from a cup-with-handle consolidation. In Retail, WING was an outlier, after gapping up ~10%. WING remains extended. Conversely, a few names, including KLXI, PAGS, and PVH, were hit with heavy distri-bution and pulled back into their respective bases.