U.S. indices ended a choppy week slightly higher, managing to hold on to gains over the last few weeks. The S&P 500 has made little progress since the July 8 follow-through day, now trading right along its 50-day moving average. The Nasdaq remains the leading index, currently holding its 21-day moving average, and looking to breakout again next week. Leadership still looks strong, with many ideas making new highs despite consolida-tion in the S&P 500. The market remains in a Confirmed Uptrend, with six distribution days on the S&P 500 and three on the Nasdaq.
Symbol: TYI
Market View
U.S. indices were able to rally back this week after last week’s sell-off. The Nasdaq is clearly outperforming the S&P 500, aided by AAPL and the Technology sector which is once again testing year-to-date highs. Though this is encouraging, it is still not enough to shift the market back into a Confirmed Uptrend. All other sectors remain depressed from last Friday’s severe price break. Market breadth will need to improve after next week’s Fed deci-sion in order for the market uptrend to resume. We continue to believe a cautious approach is warranted given the volatility in the current marketplace. We remain in an Uptrend Under Pressure with seven distribution days on the S&P 500 and four on the Nasdaq.
Market View
U.S. Indices traded higher this week with the majority of gains coming Friday after the August non-farm payrolls number was released. The market was still unable to break out of this now two month range. This sideways ac-tion has allowed the 50-day moving average to catch up to current prices, which is now acting as a clear level of short-term support. The majority of leadership ideas remain constructive though most have begun to mimic this index action. Going forward, we would like to see the indices break into new highs coupled with an increase in U.S. Focus List ideas. If, however, the S&P 500 closes beneath its 50-day moving average and leadership begins to fall off, our current bullish stance on the market will likely change. Currently, we remain in a Confirmed Up-trend with five distribution days on the S&P 500 and three on the Nasdaq.
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.
