Market Overview
The U.S. market has been downgraded to Uptrend Under Pressure. This week, the S&P 500 and Nasdaq broke below their respective 21-DMAs as distribution increased. The majority of leading ideas have pulled back off ex-tended highs and a handful have broken below their respective 50-DMAs. We recommend lightening up in both extended ideas and ideas that have broken below short-term levels of support. Going forward, we will be look-ing for the market to stabilize and bounce from key moving average and/or price support before we recom-mend buying. The next level of support is the rising 50-DMA, which is 2-3% below current levels.
Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 75 ideas (five removals) lost 3.8% on average this week, in-line with the S&P 500 (-3.8%), but un-derperforming the Nasdaq (-3.5%).
By Sector
Over the last five sessions, all sectors have declined at least 2%. Retail, Financial, and Consumer ideas have held up the best, while Energy ideas have come under pressure. Retail outperformance has come largely from AMZN, while Consumer Cyclical has been aided by NFLX. EL, MNST, and BUFF are holding up well within Con-sumer Staple. Within Financial, Banks and Brokers continue to act well. ZION, WAL, SIVB, MS, and SCHW con-tinue to show constructive technical action. Conversely, Energy ideas COG and CDEV broke short-term individu-al support levels.
