The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq traded slightly higher yesterday, still holding above 21- and 50-
DMA support, but below September high resistance. Today is day 16 of the attempted rally and we continue to wait for a follow-through
day or a breakout into new highs before upgrading the market status.
Author: Veera Manju
Won Europe Today
Yesterday,
- European markets closed flat as the European Union debates over length of Brexit extension. Developments in the impeachment inquiry against U.S. President Donald Trump also weighed on markets.
- The Stoxx 600 closed flat, with Financial Services leading the losses, while Basic Resources led the gains.
- Among other bourses, Germany’s DAX climbed 0.34%, while France’s CAC ended flat. Brexit uncertainty, with the possibility of general elections, caused the pound sterling to depreciate making the U.K.’s export‐sensitive FTSE climb 0.67%.
- Germany, the U.K., Ireland, Finland, Switzerland, Austria, Portugal, Spain, and Luxembourg closed in positive territory. Norway, Italy, and Belgium witnessed distribution days.
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq are hitting resistance near September highs after rallying strongly over the last two weeks. Near-term resistance is 3,022 on the S&P 500 and 8,243 on the Nasdaq before all-time highs. Both indices turned lower in higher volume Friday, but remain above support at their rising 21- and 50-DMA. Today will mark day 13 of the attempted rally and we continue to wait for a follow-through day or a breakout into new highs before upgrading the market status.
Won Europe Today
On Friday,
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European markets closed lower as investors remained skeptical whether Prime Minister Boris Johnson’s Brexit deal will gain support from British lawmakers in the parliament. The skepticism appeared reasonable as the parliament on Saturday refused to approve the deal and delayed the tabling to Monday.
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The pan-European Stoxx 600 closed 0.32% down with Autos taking a hit after Renault dropped 11.5% following another profit and revenue warning from the company. The action also hit France’s CAC 40, which was down 0.65% and added a distribution day.
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The U.K.’s FTSE 100 closed 0.44% down. Germany’s DAX was relatively flat and lost 0.17%.
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Finland, Sweden, Austria, and Luxembourg were the only countries to close in positive territory.
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq traded up yesterday, moving slowly back toward September highs. Near-term resistance is 3,022 on the S&P 500 and 8,243 on the Nasdaq before all-time highs. Today is day 12 of the attempted rally and we continue to wait for a follow-through day or a breakout into new highs before upgrading the market status.
Won Europe Today
We released our weekly Global Laggards report yesterday (please click here to access the report). The stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance. European names highlighted this week include {Spirax-Sarco Engineering (SPX.GB; SPX:LN), Informa (INF.GB; INF:LN), Reckitt Benckiser (RB.GB; RB:LN), Hiscox (HSX.GB; HSX:LN), and GN Store Nord (GSN.DK; GN:DC).
Won Global View
The U.S. market remains in a Rally Attempt.The S&P 500 and Nasdaq pulled back slightly yesterday, consolidating Tuesday’s gains. Today is now Day 11 of the attempted rally and we continue to wait for a follow-through day or a breakout into new highs before upgrading the market status.
Won Europe Today
Yesterday,
- European markets traded flat as investors kept a tab on the latest developments in Brexit talks and increasing Sino-U.S. tensions due to Hong Kong protests.
- With Prime Minister Boris Johnson facing resistance from Democratic Unionist Party on issues of customs union and sales tax, hopes of an imminent Brexit deal have faded. The pound sterling remained volatile and was down from its five-month highs against the euro.
- The Stoxx 600 ended the day flat, led by gains in Banks and Automobile stocks. Technology stocks dropped more than 2%. All the other major indices also ended flat to slightly negative.
- France, the U.K., Denmark, Ireland, Switzerland, the Netherlands, and Luxembourg closed in negative territory. Eight of the seventeen indices that we track are in a Confirmed Uptrend.
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq gapped up at yesterday’s open due to positive earnings reactions from multiple mega-cap bellwethers. Though it was another positive session, indices were unable to stage a follow-through. A follow-through day should give the feeling of an explosive rally that is strong, decisive, and conclusive, not begrudging and on the fence. We will be looking for indices to break and close into new highs or stage a legitimate follow-through day before upgrading the market status.
Won Europe Today
We released our European Weekly summary yesterday (please click here to access the report).
- We recommend increasing exposure to European Equities after the Stoxx 600 along with indices of France, Belgium, Italy, Spain, and Sweden was upgraded to a Confirmed Uptrend.
- Cyclicals and Financial stocks are leading the gains, while Consumer Staple stocks are seeing distribution.
- Among the stocks, we have added Solaria Energia (SEM.ES; SLR:SM) to our Focus List. There were no removals.
