Software (IGV): The software index remains near its pivot while breaking out into all-time highs from a six-week base consolidation. RS Rating of 77 and A/D Rating of B+. Although underlying action across IGV constituents has been mixed, quality large caps with a focus on enterprise companies have outperformed both fundamentally and technically. Standout software earnings results that are insulated from supply chain or inflation concerns include MSFT, NOW, and Dassault Systems (DSY.FR), which are emerging from short bases and remain near their pivot, while TEAM gapped higher despite being already extended. Other quality growth ideas setting up and approaching their pivots includes CRWD, WDAY, and VEEV. Although the majority of IGV stocks are rising, focus on companies that are the biggest beneficiaries of the digital transformation.
Symbol: SKJ.KR
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq have now both broken out to new
all-time highs. There are multiple levels of support below current prices, including the prior highs (S&P 500:
4,545; Nasdaq: 15,403) before the sharply rising 10- and 21-DMA. Distribution has mostly been avoided for
two weeks with the count at five and four, respectively, with three expiring on each next week.
Global Focus Emerging
The CSI 300 gained 0.56% on lower and below average volume and remains in an Uptrend Under Pressure with four distribution days. The index traded around its converging 21- and 50-DMA (~4,900, -1.2%) for the week. Resistance remains at previous highs near 5,000 (+0.8%) and next support is at July 28’s low (~4,664, -6.0%).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to trend into new highs, while the Nasdaq is now testing alltime high resistance of 15,403. Both the 10- and 21-DMA have now crossed above the 50-DMA, providing near-term support should
indices pull back. The distribution day count remains at five each, with one expiring on each Friday before three additional days expire next
week.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 made a new all-time high last week, showing instant progress after
regaining its 50-DMA. The Nasdaq also continued its push higher before pulling back Friday to close ~2% off all-time high resistance of
15,403. We continue to view the 50-DMA (S&P 500: 4,445; Nasdaq: 14,899) as a key level of short-term support, though both the 10- and
21-DMA are now crossing above that level. The distribution day count stands at five each, with one day expiring on both this Friday and
three expiring on each next week.
Global Focus Emerging
The CSI 300 gained 0.56% on lower and below average volume and remains in an Uptrend Under Pressure with four distribution days. The index traded around its converging 21- and 50-DMA (~4,900, -1.2%) for the week. Resistance remains at previous highs near 5,000 (+0.8%) and next support is at July 28’s low (~4,664, -6.0%).
Global Focus Emerging
The CSI 300 ended flat with a modest gain of 0.04% on below average volume. The market remains in an Uptrend Under Pressure with five distribution days. The index was consolidating around its 21- (~4,901, -0.6%) and 50-DMA (~4,899, -0.7%) with resistance at previous highs of ~5,000 (+1.4%) and support at July 28’s low (~4,664, -5.4%).
Global Focus Emerging
The CSI 300 gained 1.31% on higher but below average volume on Friday, the only trading session in this holiday-shortened week. The market remained in an Uptrend Under Pressure with six distribution days. The index retook its converging 21- and 50-DMA (~4,900; -0.6%). Next resistance lies at the 100-DMA (~5,038; +2.1%) and support lies at the low of July 28 (~4,664; -5.7%).
Global Focus Emerging
The CSI 300 posted a modest gain of 0.35% in the four-trading-session week. The market remained in an Uptrend Under Pressure with six distribution days. The index tested resistance at its 21- (~4,890, +0.5%) with the next support at July 28’s low (~4,664, -4.2%).
Global Focus Emerging
The CSI 300 posted a modest loss of 0.13% in the three-trading-session week. The market remains in an Uptrend Under Pressure with the distribution day count decreasing to six following one expiration. The index tested resistance at, but remains pressed by, the 21-DMA (~4,884, +0.7%). Next resistance at the 50-DMA (~4,925, +1.6%) and support is at July 28’s low (~4,664, -3.8%).
