Australia’s ASX All-Ordinaries Index increased 0.01% this week. It is trading 3.03% above its 200-DMA and is at 52-week highs. The index is in a Confirmed Uptrend.
Symbol: NXT.AU
Market View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to show resilient action, staging upside reversals on Thursday and continuing into all-time highs to close the week. The Nasdaq did pick up one distribution day, but the count still remains very low at just one day on the S&P 500 and two on the Nasdaq. Leadership has been very strong, with multiple U.S. Focus List ideas gapping up into all-time highs after earnings. We remain positive on the general market.
Stocks on our U.S. Focus List—Current Sentiment
By Sector
Strength across the USFL came primarily from Technology and Financial. Software led with major gap ups in ADBE and TEAM this week. ADSK, RHT, CRM, NOW, PAYC, and SSNC all hit new highs. Financial was led by ESNT, which has rallied for nine straight sessions. Payment Processors and Banks were also under accumulation. MS remains at a pivot, but becomes extended above $51. PYPL gapped into an all-time high after earnings.
New Ideas or Deletions
We added Zayo Group and removed Celgene from the U.S. Focus List this week.
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index increased 1.43% this week. The index is trading 2.7% above its 200-DMA and is at a 52-week high. The index is in a Confirmed Uptrend.
Market View
U.S. indices broke lower this week, picking up distribution along the way. Though both the S&P 500 and Nasdaq are still trading within a range, many ideas have begun the process of forming new bases as we head into Q3 earnings season. The S&P 500 also broke below near-term price support and the Nasdaq undercut its 50-day moving average. Therefore, the market has been moved to Uptrend Under Pressure until we see support come into both the major averages and leadership ideas alike.
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index lost 0.6% this week. After
breaking below its 10-week moving average last week, the index
closed below it again this week. The index is Under Pressure and
has seven distribution days after picking up one more this week.
The next support level is likely AUD 5,400, where the index had a
follow-through day in mid-July.
Global Focus Developed Long
The Australia ASX All-Ordinaries Index lost 2.4% this week, falling in
four of five trading days and clearly breaking below its 10-week moving
average. At 4% off recent highs and with seven distribution days in the
past five weeks, the index is Under Pressure. The next support level is likely
AUD 5,400, around where the index had a follow-through day in mid July.
Global Focus Developed Long
The Australia ASX All-Ordinaries Index lost 0.3% for the week. It
picked up three distribution days this week and now has six in the
last five weeks. Although price action has been fairly quiet, with the
index basically flat over the past three weeks, the increasing distribution is
enough to warrant caution.
Global Focus Developed Long
The Australia ASX All-Ordinaries Index gained 0.7%, bouncing back
after last week’s losses and closing within 1% of 52-week highs. It
picked up two distribution days last week and has three over the past five
weeks. The next key level to the upside is AUD 5,700, the highs before
the sharp breakdown in August 2015. If it corrects, the AUD 5,500 level
will likely be the first level of support, close to its rising 10-week moving
average.
Global Focus Developed Long
The Australia ASX All-Ordinaries Index gained 1.2%, its third week
of gains during which it has risen about 6%. It is now within 1% of
52-week highs. With just one distribution day, it is due for consolidation
after rising in 20 of the past 25 days of trading.
Market View
The S&P 500 and Nasdaq rose for a fourth straight week, grinding higher in relatively light volume. We did pick up one distribution day on the S&P 500 and two on the Nasdaq, but overall the count still remains low. We con-tinue to anticipate a pullback in the major averages after such a sharp move higher. On the S&P 500, we would like to see 2120 hold, but ultimately we view the rising 50-day moving average as a key support level. On the Nasdaq, we view 5000 as a strong support level, but could see the index trading down to ~4970 while still re-maining constructive.
