The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend higher off their respective 10-DMAs with a low number of distribution days. Distribution now stands at two days each with another day expiring next Wednesday. Support below the 10-DMA remains the sharply rising 21-DMA (S&P 500: 2,891; Nasdaq: 7,955).
Symbol: WWE
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq closed at new all-time highs yesterday and are now testing resistance at last August/September’s intraday highs (S&P 500: 2,940; Nasdaq: 8,133). Distribution remains absent at three days each and 21-DMA support continues to rise toward current prices.
US Focus
Te U.S. market is in a Confrmed Uptrend. Te S&P 500 and Nasdaq continue to trend higher, holding near-term support along their respective 10-DMAs on Tursday. Distribution stands at three days each with no expiration until the end of next week. Should a pullback occur, we will be looking for the rising 21-DMA t
Media and Internet
Key points from the report:
U.S. Media/Internet sentiment
Old Media versus New Media Group Rank
Media –TV/Radio
NXST, GTN
New Media themes
Connected TV
TTD, ROKU
OTT competitive landscape widens: Disney+, AppleTV+
DIS, NFLX
Regulation GDPR
FB
Other ideas
MTCH, WWE, CABO, NYT, YELP
International ideas
YNDX, InfoEdge, PVR
US Focus
Te U.S. market is in a Confrmed Uptrend. Te S&P 500 and Nasdaq continue to trend higher, making new year-to-date highs on Friday. Te distribution count has moderated to a reasonable level of just two days on the S&P 500 and three on the Nasdaq. Te 50-DMA on both indices is now well above the 200-DMA, though we still view the 21-DMA (S&P 500: 2,854; Nasdaq: 7,810) as a key level of short-term support.
Market View
Strategy View
Q1 earnings season is expected to be a significant deceleration from Q4. Median S&P 500 sales and EPS growth of 3% and 4%, respectively, would be the lowest since 2016. We do expect normal beats of 1% for sales and ~3% for EPS. Any lower-than-normal sales and EPS beats, or poor guidance, will put significant pressure on the ongoing rally.
Bull investment advisor sentiment reading of 53% and a VIX of 13.5, are bullish but not extreme, similarly making the results of this earnings season a large variable.
Index and sector setups are broadly positive ahead of earnings, with all now supported by upward-trending 50-DMA.
Best sector setups into earnings are Technology, Health Care, Capital Equipment, and Staples.
While the number of actionable U.S. Focus List stocks is smaller than over the previous two months, a few strong setups include AMZN, PAGS, CCMP, ISRG, LULU, GLOB, and FOXF.
US Focus
Te U.S. market is in a Confrmed Uptrend. Te S&P 500 and Nasdaq continue to push higher
and are now testing resistance near October 2018 highs. Near-term support remains the rising 21-
DMAs (S&P 500: 2,831; Nasdaq: 7,724). Distribution continues to expire, now at four days each
with two additional days falling off next week.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped up yesterday and closed positively at the highs of the session. The S&P 500 cleared above March 21’s intraday high of 2,860, while the Nasdaq still faces resistance at ~7,850. Both indices are trending higher off 21-DMA support with six distribution days each. Though this count remains elevated, four distribution days will expire over six days beginning tomorrow.
WON Global View
The U.S. market remains in a Confirmed Uptrend.The S&P 500 and Nasdaq held their respective 21-DMA last week, consolidating gains. The 50-DMA is now moving above the 200-DMA and will act as another layer of support should the market pull back. There are currently six distribution days on each index, though four will expire within six sessions beginning Wednesday.
Market View
An inverted three-month (13-week) to 10-year yield curve has been a good predictor of recessions (about
12 months out).
Inversion does not always lead to weak market performance but does so on average.
o In all cases where the curve inverted on a weekly basis since 1962, average 4/8/13/26/52-week
forward performance for the S&P 500 is negative.
Cyclicals and Utility tend to be weak, while Material has performed the best.
Interestingly, Utility is currently the best performer over one year, while Material is the worst. A
mean reversion could be approaching.
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq held their respective 21-DMA this
week, consolidating gains. The 50-DMA is now moving above the 200-DMA and will act as another layer of
support should the market pull back. There are currently six distribution days on each index, though four will
expire within six sessions beginning next Wednesday.
Leading ideas are consolidating constructively, with few major technical breakdowns. We will look for secondary
entry points in leading ideas over the next several weeks. Generally, bases take five to seven weeks to complete
and should occur above near-term support levels, including the 50-DMA, the 100-DMA, or prior pivot points.
We recommend a selective and patient approach as the market consolidates. We would like to see distribution
subside and the right-hand side of bases begin to form over the next few weeks before recommending any
meaningful increase in risk.
Sectors: Over the last five sessions, Transportation, Capital Equipment, Consumer Cyclical, and Retail are
leading, while Technology and Utility are lagging. Technology remains a long-term leading sector despite the
recent pullback, and is still trading above 21-DMA support.
