Twenty-three developed markets gained 0.5% on average for a fifth week of gains. Nineteen are in a Confirmed Uptrend (including two Under Pressure), an increase of one from the prior week.
Tag: Confirm Uptrend
Market View
The U.S. market remains in a Confirmed Uptrend. The Nasdaq and S&P 500 bounced back under heavy accumulation, after a minor sell-off to start the week, while the Russell 2000 jumped out of a nine-month consolidation. All indices broke out into all-time highs. Market strength is due to accumulation in Technology (Semis) and Transports and a re emergence into Financials (Banks/Brokers). With the distribution day count falling to two days on the Nasdaq and S&P 500, we maintain a positive outlook as we head into Q4.
By Sector
Strength across the USFL this week was primarily from three sectors — Transportation, Technology, and Financials. Our lone Transportation idea, FDX, is emerging from cup consolidation after recently reporting Q1 results. Within Technology, a better-than-expected outlook from AMAT has contributed to strength in the entire Semiconductor space including MPWR and ON. In addition, software platform provider SSNC is breaking out of a flat base and remains actionable. Improvement in the 10-year brings many Financial stocks, specifically Banks and Brokers, in focus. FRC, MS, SCHW, and ESNT are all showing positive price action and are at or near a pivot point.
