The U.S. market remains in a Confirmed Uptrend. The S&P 500 made another new all-time high Thursday, moving back above its upper channel line and more than 5% above its 50-DMA before pulling back from extended levels Friday. The Nasdaq briefly touched a new all-time intraday high Thursday, before also pulling back on Friday. We continue to view short-term support at the rising 21-DMA for both indices. The distribution day count remains low at three days each, though there will be no expiration for two full weeks.
Tag: Confirmed Uptrend
European Focus
On Thursday, the Stoxx 600 ended 0.06% below last Friday’s close. Of the 17 indices we cover, 16 are in a Confirmed Uptrend and one in an Uptrend Under Pressure. This week, we shifted Spain to a Confirmed Uptrend after it reclaimed its previous high.
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed relatively flat for the week
after each held support along short-term moving averages. The S&P 500 rallied off its 10-DMA Friday to close
back at its upper channel line, while the Nasdaq held its 21-DMA before moving back toward all-time high re-
sistance at 14,175. The distribution day count stands at four each with one expiring on the S&P 500 and two on
the Nasdaq next week.
China A Shares
The CSI 300 rose 3.41% on higher but below average volume this week. The market was shifted to a Confirmed Uptrend Monday as the index rose 2.43% on much higher volume and broke above the 21-DMA. The index managed to hold above its 21-DMA (~5,050, -1.7%) for the following four sessions, with next support at the 200-DMA (4,975, -3.1%). The next level of resistance lies at the declining 50-DMA (~5,200, +1.3%). China’s central bank kept its benchmark lending rate LPR (loan prime rate) unchanged as expected. The New Energy, Health Care, and Food & Beverage sectors led the market. The Electronics sector followed the gains due to expectations of semiconductor price increases. We noticed that those stocks started to trend upward after retreating 30% or more from highs. Our conviction increases but we still advise investors to take a cautious approach before the index retakes the 100-DMA and 50-DMA and holds above these levels. Be selective and focus on companies with strong earnings and improving technical profiles.
European Focus
On Thursday, the Stoxx 600 closed 0.64% below last Friday’s close. Of the 17 indices that we cover, 15 are in a Confirmed Uptrend, including the Stoxx 600, while the remaining are in an Uptrend Under Pressure. Denmark, Ireland, and Norway were upgraded to a Confirmed Uptrend after they reclaimed their prior rally highs.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed relatively flat for the week after each held support along short-term moving averages. The S&P 500 rallied off its 10-DMA Friday to close back at its upper channel line, while the Nasdaq held its 21-DMA before moving back toward all-time high resistance at 14,175. The distribution day count stands at four each with one expiring on the S&P 500 and two on the Nasdaq next week.
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to make new all-time highs, now
gaining 1% or more for four straight weeks. The index is trading above its upper channel line and ~6% above its
50-DMA, the biggest extension since August 2020. Though extended, there are no signs of technical weakness
as the index remains above all major moving averages with low distribution. The Nasdaq is testing all-time high
resistance between current prices and 14,175. Look for the 10- and 21-DMA to act as near-term support should
indices pullback next week. The distribution day count stands at three and four, respectively, with no expiration
next week.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to make new alltime highs, now gaining 1% or more for four straight weeks. The index is now trading above its upper channel line and ~6% above its 50-DMA, the biggest extension since August 2020. Though extended, there are no signs of technical weakness as the index remains above all major moving averages with low distribution. The Nasdaq is now testing all-time high resistance between current prices and 14,175. Look for the 10- and 21-DMA to act as near-term support should indices pullback next week. The distribution day count stands at three and four, respectively, with no expiration next week.
European Focus
On Thursday, the Stoxx 600 ended 0.30% above last Friday’s close. Of the 17 indices that we cover, 12 are in a Confirmed Uptrend and five in an Uptrend Under Pressure.
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied strongly this week, building
on last week’s gains and now approaching levels of potential resistance. The S&P 500 is now sitting just below
its upper channel line, a level the index has respected since breaking out last November. The Nasdaq, after re-
gaining its 50-DMA late last week, is now on the right side of an eight-week consolidation and approaching re-
