The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq held support at
their respective 21-DMA this week before closing at the highs of the session on Friday. Positively,
both indices avoided distribution with the count falling to just one and three days, respectively. We
have yet to see a clustering of distribution days and leading ideas continue to trade constructively
above support
Symbol: PKI
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back in lower volume, avoiding distribution. Both indices are now sitting within 1% of their respective 21-DMA. The distribution day count stands at three and four days, respectively, with one day expiring on the S&P 500 tomorrow.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq bounced off levels slightly below their respective 10- and 21-DMA, albeit on light volume. The distribution day count remains unchanged at three and four days, respectively, however, a distribution day will expire on each index after the close on Wednesday, and another on the S&P 500 after the close on Friday.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back off
early week gains, however, both managed to close off lows and keep a relatively low distribution
day count. Further, two distribution days will expire on the S&P 500 and one on the Nasdaq
next week. Extended leadership is also acting well despite pulling back off significant gains. The
majority are consolidating above support rather than breaking down in concerning fashion. Should
weakness persist, we will be looking for both indices to close above their respective rising 50-DMA
(S&P 500: 3,104; Nasdaq: 9,933) to remain constructive.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back off
early week gains, however, both managed to close off lows and keep a relatively low distribution
day count. Further, two distribution days will expire on the S&P 500 and one on the Nasdaq
next week. Extended leadership is also acting well despite pulling back off significant gains. The
majority are consolidating above support rather than breaking down in concerning fashion. Should
weakness persist, we will be looking for both indices to close above their respective rising 50-DMA
(S&P 500: 3,104; Nasdaq: 9,933) to remain constructive.
US Focus
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq remain resilient and are
holding above their respective 10-DMAs despite Monday’s downside reversal. The S&P500 is less
than 1% below resistance at 3,233 and remains in a 6-week consolidation. Distribution count has
declined this week and currently stands at four and two days respectively.
US Focus
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq remain resilient and are
holding above their respective 10-DMAs despite Monday’s downside reversal. The S&P500 is less
than 1% below resistance at 3,233 and remains in a 6-week consolidation. Distribution count has
declined this week and currently stands at four and two days respectively.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq staged a downside reversal in higher volume, closing at the bottom of the session’s range and picking up a distribution day in the process. Distribution count increased to six and three, respectively; however, two days are set to expire later this week on the S&P 500, while one will expire on the Nasdaq. Both indices are slightly above their 10-DMA (S&P 500: 3,143; Nasdaq: 10,338), followed by support at the 21-DMA (S&P 500: 3,111; Nasdaq: 10,095).
Strategy View
Key Points:
- This report provides several historical bear market examples and their depth/time, number of follow-through days, and a handful of stock leaders that emerged once the market bottomed.
- The current 30%+ drop from highs to lows has only been rivaled in its velocity a couple of times, in 1929 and 1987.
- If we have established lows on indices, this would be the shortest bear market ever, at just five weeks (1929: 10 weeks, 1987: eight weeks).
- We see additional time and a retest of lows as much more likely given a now sharply slowing economy.
- We have yet to have a follow-through day since February highs, and we note that in only one case (1987) did the market hold its lows after just one follow-through day. The 1929 market had two failed follow-through days before a successful third.
- However, we will keep an open mind, and should we get a follow-through day soon, we will be looking for select RS leaders to buy.
- These currently include AAPL, ADBE, AMED, AMZN, ATVI, BABA, BIO, CIEN, COUP, CWT, DOCU, DPZ, FIVN, GSX, JD, MRCY, MSFT, MTD, NEM, NFLX, NOW, NTES, PDD, VEEV, VIPS, VRTX, WDFC, ZM.
Global Laggards
Highlighted Charts
U.S.: Grace WR and Co ( GRA ), Kennametal ( KMT ), Proto Labs ( PRLB ), New York Times ( NYT ), Fox Factory ( FOXF ), Wingstop ( WING ), Warrior Met Coal Inc ( HCC ), Franklin Resources ( BEN ), Perkinelmer ( PKI ), Tractor Supply ( TSCO ), Monro ( MNRO ), Juniper Networks ( JNPR ), Citrix Systems ( CTXS ).
Developed: Salvatore Ferragamo ( SFER.IT, SFER IM ), Daito Trust Construction ( DITC.JP; 1878 JP ), Evotec ( EVTX.DE; EVT:GR ), Ericsson ( SL@G.SE; ERICB SS ), China Telecom ( CTC.HK; 728 HK ).
Emerging: Upl Limited ( UPH.IN; UPLL IN ).
Stocks worth focusing on in this week’s Global Laggards:
Wingstop ( WING ) – Retail; $2.6B market cap — owns and franchises 1,273 restaurants in 10 countries with a focus on cooked-to-order chicken wings. 2018 revenue by segment: franchised stores, 69%; company-owned, 31%.
