The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trending into new all-time highs after clearing out from consolidation this week. Near-term support for both indices remains this rising 10-DMA (S&P 500: 3,642; Nasdaq: 12,215). The distribution day count declined, falling to four and three, respectively, with no further expiration next week.
Author: Sandeeep N
European Focus
We have added a couple of distribution days this week. On Thursday, the Stoxx 600 closed 0.38% below last Friday’s close. Today, the index is slightly up.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 0.7% this week. It is trading above all key moving averages and is 6% below its 52-week high. It is in a Confirmed Uptrend with one distribution day.
Global Focus Emerging
The CSI 300 gained 1.71% on higher and above average volume. The market remains in a Confirmed Uptrend with the number of distribution days decreasing to three. The index made a new high of ~5,090 (+0.5%) Wednesday, with no clear resistance until June 2015’s high (5,380, +6.2%).
Global Focus Frontier
Saudia Dairy and Foodstuffs Company (Sadafco) is engaged in the manufacturing and distribution of food products. UHT Milk, tomato paste and Icecreams are its major products.
China A Shares
The CSI 300 gained 0.76% on slightly higher volume. The market remains in a Confirmed Uptrend with the number of distribution days decreasing to four. The index made a new high of ~5,030 Monday but trended downward the following two sessions and reversed back to hold above the 10- DMA. The index faced resistance at Monday’s high (5,030, +1.0%) and support lies at the 21-DMA (4,890, -1.8%). Industrial profits in October rose 28.2% y/y, significantly higher than September’s 10.1%, mainly due to accelerating chemical product manufacturing growth. Low-valuation sectors Financial and Energy led the market this week. Health Care lagged on the news of a second round of collective medical supply purchases. Consumer Cyclical underperformed mainly due to the pullback of home appliance stocks. Sector rotation has been quick and there has been no consistent leadership after the index retreated from 5,030 Tuesday. We expect the CSI to remain in consolidation and advise investors to adopt a selective approach amid current strong sector rotation.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trading at all-time highs. Support remains the rising 10- and 21-DMA (S&P 500: 3,546; Nasdaq: 11,790). Each index has six distribution days, however, three expire on each next week, including one on Monday.
European Focus
On Thursday, the Stoxx 600 ended 0.52% above last Friday’s close. Of the 17 indices that we cover, 16 are in a Confirmed Uptrend and one is in an Uptrend Under Pressure.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 1.1% this week. It is trading above all key moving averages and is 6% below its 52-week high. It is in a Confirmed Uptrend with four distribution days. All four are set to expire next week.
Global Focus Emerging
The CSI 300 gained 0.76% on slightly higher volume. The market remains in a Confirmed Uptrend with the number of distribution days decreasing to four. The index made a new high of ~5,030 Monday but trended downward the following two sessions and reversed back to hold above the 10-DMA. The index faced resistance at Monday’s high (5,030, +1.0%) and support lies at the 21-DMA (4,890, -1.8%).
