Consumer Staples (XLP): The index declined 1.7% last week and continued to face stiff resistance at its 200-DMA. It is trading below all its key moving averages. Immediate resistance is at its declining 10-DMA, which has crossed below all its long-term moving averages. Support is at $79.3 (-0.6%), followed by ~$77 (-3%).
Author: Tristan d'Aboville
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 gained ~1% last week, rebounding off its 50-DMA and reclaiming short-term moving averages. It is now trading slightly above the 21-DMA, which serves as the immediate support level, followed by the 50-DMA (-1%). The index remains in an Uptrend Under Pressure with three distribution days.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index traded flat in a choppy week. It tested resistance at its declining 21-DMA, which has crossed below its long-term moving averages. Support is at $79.8 (-1.2%), followed by $79.3 (-1.8%).
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 fell ~15 bps last week, marking its second consecutive weekly decline. The index added one distribution day, bringing the total to three. It closed just above its 50-DMA after briefly breaching it mid-week. The market status was shifted to Uptrend Under Pressure. Immediate support lies at the 50-DMA (-0.3%) and then the 100-DMA (-1%).
- Eight markets were downgraded last week—including the U.K., Denmark, Finland, Sweden, Italy, Spain, Belgium, and the Stoxx 600 itself—to Uptrend Under Pressure from Confirmed Uptrend. Portugal was downgraded to a Downtrend. Average distribution rose to 3.8, from 2.8 the prior week and 1.2 two weeks earlier.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index declined 0.5% this week and broke below its 200-DMA. It is trading below all key moving averages and facing stiff resistance at the 200-DMA. Next resistance is at its declining 21-DMA (+0.9%). Support: Near $80 (-1%), followed by ~$79.7 (-1.2%).
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 remains in a Confirmed Uptrend, but cracks are starting to appear. Regional indexes have picked up distribution days, while overall market breadth has deteriorated sharply, with fewer breakouts and weaker T2121 (12-week new high/new low ratio) readings—signaling growing fragility in the rally.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index declined 2.7% this week and broke below all key moving averages on above average volume. Support: $79.8 (-1%), followed by $79.3 (-1.5
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- European indices closed mostly positive last week, trading at/near 52-week highs, but they retreated slightly early this week. The Stoxx 600 gained ~140 bps last week and hit 52-week highs with immediate support at the rising 21-DMA (-1%), followed by the 50-DMA (-2%).
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index rose 0.2% this week. It pulled back and took support at its 10-DMA in the initial session of the week but bounced off that level in the last session of the week, rising 1%. It is forming a stage-one flat base with a pivot of $84.35 (+2%). Support is at its 21-DMA (-1%), followed by its 50-DMA (-2%).
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- European indices closed positive last week, trading at/near their 52-week highs. Italy, Austria, Spain, and Ireland gained ~3%, hitting a new 52-week high. The U.K. and Belgium also registered a fresh 52-week high last week, each gaining 0.9%. Portugal closed flat and is trading near its 52-week high. Germany, Finland, and Norway gained 0.2–0.8%, trading constructively above all their key moving averages and 1–3% off highs. France and Sweden rallied 1.4% and 2.3%, respectively, maintaining the upward momentum after retaking their 200-DMA, 4–5% off highs. Denmark bounced off its 52-week low and ran into resistance at the declining 10-DMA, 46% off highs. Switzerland and the Netherlands are facing strong resistance at the 200-DMA, 6–9% off highs.
- Last week, all sectors closed in the green, except Energy (-0.5%). Health Care (+3.4%) outperformed. Transportation, Basic Material, and Consumer Staple gained 0.4–0.6%. The remaining sectors were up 1.0–1.5%.
- We remain positive on the European markets, though the stock leadership is skewed toward Financial and Capital Equipment. Some indices are extended from their short-term moving averages, where we would like to see consolidation. Our constructive stance holds as long as the indices remain above these moving averages.