The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend higher off their respective 10-DMA with a low number of distribution days. Distribution now stands at two days each withanother day expiring Wednesday. Support below the 10-DMA remains the sharply rising 21-DMA (S&P 500: 2,892; Nasdaq: 7,959).
Author: Veera Manju
WON Europe Today
Two reports released yesterday to go through:
- The Weekly European Summary – please click here to access the report). In the report, we have highlighted that European markets continue to be strong and constructive in the midst of mixed earnings (beat/miss ratio at 53%). Over 26 weeks, Capital Equipment, Cyclical, Retail, and Tech continue to lead the general market, but a majority of the leaders are now extended: Halma (HLMA.GB), Homeserve (HSV.GB), Diploma (DPLM.GB), Kingspan (KRX.IE), Seb (SEB.FR), Nibe (NIBE.SE), JD Sports (JD.GB), Dassault (DSY.FR), Nemetschek (NEMX.DE), to name a few. As a result, actionable names on our European Focus List (O’Neil recommendations) are becoming scarce. The list does include Adyen (ADYE.NL) in Financial, Givaudan (GIVN.CH) and IMCD Group (IMCD.NL) in Basic Materials, GN Store Nord (GSN.DK) and Carl Zeiss Meditech (AFXX.DE) in Health Care, and Safran (SGM.FR) in Capital Equipment.
- Our weekly Global Laggards report(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 Koninklijke Ahold Delhaize (AD.NL; AD:NA).
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to consolidate gains constructively while moving average support rises toward current prices. Distribution remains absent at three days each with one expiring at the close today.
WON Europe Today
On Wednesday, all European markets apart from Germany, Sweden, and Switzerland ended negative owing to a slowdown of stimulus in China coupled with a decline in the energy stocks that were impacted by a pull-back in oil prices.
- The Stoxx 600 was down marginally by 0.12% on higher volume, breaking the streak of gains for eight consecutive sessions. The index remains in a Confirmed Uptrend.
- Among the key markets, the U.K.’s FTSE 100 and France’s CAC 40 fell 0.68% and 0.28%, respectively, while Germany’s DAX gained 0.63%. The DAX was aided by a 12% rise in shares of the Germany-based enterprise software giant SAP (SAPX.DE; SAP:GR) after it posted strong Q1 earnings. All the indices are in a Confirmed Uptrend.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back slightly in light volume yesterday, consolidating gains constructively and avoiding distribution which remains at three days each. Near-term support below the 10-DMA remains the sharply rising 21-DMA (S&P 500: 2,884; Nasdaq: 7,924).
WON Europe Today
Yesterday, most European markets closed higher in the midst of earnings. Growth was aided by a robust performance from the Energy sector, which was strongly supported by a rise in oil prices owing to the termination of every waiver on sanctions against Iranian oil imports by the U.S.
- The Stoxx 600 was up 0.23% on lower volume, realizing gains for the eighth consecutive trading session progressing well above the key moving averages.
- Key markets like the U.K.’s FTSE 100 surged 0.85%, followed by France’s CAC 40 and Germany’s DAX, which gained 0.20% and 0.11%, respectively. All the indices are in a Confirmed Uptrend.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq closed at new all-time highs yesterday and are now testing resistance at last August/September’s intraday highs (S&P 500: 2,940; Nasdaq: 8,133). Distribution remains absent at three days each and 21-DMA support continues to rise toward current prices.
WON Europe Today
We released our weekly Global Laggards report (please click here to access the report) on April 19. 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 Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS) and Svenska Cellulosa Aktiebolaget Sca B (SW@G.SE; SCAB:SS).
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq reversed off 10-DMA support for a second straight session, holding trend and closing relatively flat on the day. Distribution remains steady at three days with no expiration until Friday’s close. Support below the 10-DMA remains the 21-DMA at 2,873 on the S&P 500 and 7,882 on the Nasdaq.
WON Global View
The U.S. market is in a Confirmed Uptrend.The S&P 500 and Nasdaq continue to trend higher, holding near-term support along their respective 10-DMA Thursday. The distribution count remains low with three days on each index. Should a pullback occur, we will be looking for the rising 21-DMA to act as support (S&P 500: 2,870; Nasdaq: 7,869).
