The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq traded relatively flat yesterday in light volume, still holding above 21-DMA support. The 50-DMA is set to move above the 200-DMA for both indices in the coming days. Distribution remains at six days each, with four expiring over six sessions beginning next Wednesday.
Symbol: WWE
US Focus
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.
WON Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back yesterday, each picking up a sixth distribution day. Both indices closed off sessions lows and above 21-DMA support. The distribution day count is elevated, but four days will expire within six sessions beginning next Wednesday.
WON Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed in the middle of their respective intraday ranges yesterday, remaining above 21-DMA support with five distribution days each. Four distribution days will expire within six sessions beginning next Wednesday. The 50-DMA is rising sharply and will likely move above the 200-DMA to act as another level of support within the next week.
WON Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were able to close off session lows and above their
respective 21-DMA yesterday. Distribution remains at five days each with no expiration until next Wednesday.
WON Global View
The U.S. market remains in a Confirmed Uptrend. Following strong gains last Thursday, the S&P 500 and Nasdaq pulled back sharply into support on Friday, closing at the lows of the session with each picking up a fifth distribution day. The S&P 500 is now testing 21-DMA support, which is rising to the 2,800 level. The Nasdaq is now trading just 60bps above its 21-DMA after falling 2.5% on Friday and erasing five straight days of positive gains.
Market View
Strategy View
Presently, U.S. equity markets remain in a Confirmed Uptrend. The indices’ progress since the December 24,
2018 low is nothing short of amazing, with all major indices up at least 18% as of March 21. All but the Russell
2000 are above both their 50- and 200-DMA.
One of the more remarkable aspects of the current rally is that most asset classes have made positive moves in
unison; U.S. bonds, U.S. stocks, oil, and metals have all risen. Every single one of our 11 sectors has posted
strong returns as well.
In addition, the spread between the best-performing sector, Technology (+20.7%), and the worst, Consumer
Staple (+9.6%), is 1,010bps. Technology’s gain is only 6% greater than the average, while Staples lags the
average by approximately 4%.
On a relative basis, Utility is still the best performer over the trailing one-year, and recently reached a historical
extreme of +20% versus the S&P 500. In fact, it may be near a relative peak, especially if the worst of the 10-
year yield slide is over. Materials are by far the worst over the trailing one-year, lagging Utility by nearly 30%.
This could be at a trough, but this sector likely needs improvement in the economy to revert.
Elsewhere, Technology is slightly outperforming the S&P 500 over the trailing one-year but is trending positively
(particularly in semis and software), while Retail still holds a large lead, but continues its relative deceleration.
Lastly, Energy’s relative trend is improving, but it still has some distance to make up before it becomes a leader.
So far, this rally has rewarded investors regardless of the sectors in which they are invested. Going forward, we
expect performance to be much more dispersive, and the importance of selecting the correct sectors to invest in
will be much higher.
As mentioned in our Global Sector Commentary on February 22, once breadth (as measured by the percentage
of NYSE stocks above their 30-week average) moves higher than 75%, further market gains tend to be met with
a narrowing of breadth. As a result, we expect larger divergences for the remainder of the year.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq each jumped more than 1% after consolidating earlier this week. The distribution count stands at four days on each index after one day expired on the S&P 500 at yesterday’s close. The next level of resistance is ~2,864 on the S&P 500 and ~7,873 on the Nasdaq.
US Focus
Te U.S. market remains in a Confrmed Uptrend. Following strong gains on Tursday, the S&P 500 and Nasdaq pulled back sharply into support on Friday, closing at the lows of the session. Te S&P 500 is now testing its 21-DMA, which is rising to the 2,800 level. Te Nasdaq is trading 60 bps above its 21-DMA after erasing four straight days of positive gains. Tere remains a moderate number of distribution days, however, with no expiration for two weeks, we expect the number to rise. A further pick-up in distribution that takes the major averages below 21-DMA support could lead to consolidation in extended leadership.
WON Global View
The U.S. market is in a Confirmed Uptrend. Indices traded in a seesaw fashion yesterday, but price action remains constructive and the indices continue to consolidate above prior resistance levels at 2,815 (November 2018 high) on the S&P 500 and 7,670 (October 2018 high) on the Nasdaq. One distribution day will expire on the S&P 500 after the close today.
