The CSI 300 fell 0.59% on slightly higher volume. The market was shifted to a Confirmed Uptrend Monday, with the number of distribution days increasing to five. Next support is at the 21-DMA (4,805, -1.1%) and resistance lies at Monday’s new high of ~5,000 (+9.0%). The index gapped up to break above resistance at August’s high (~4,900) on much larger volume Monday, as Joe Biden’s victory in the U.S. presidential election raised hopes about U.S.-China relations. However, it trended down the following four sessions and fell below 4,900 again Friday, as October M2 and incremental RMB loans were lower than consensus and September data, lifting concerns about shrinking liquidity. Defaults of some AAA-rated credit bonds also pressured market sentiment. Basic Material and Energy led this week on expectations of a global economic recovery, boosted by stronger-than-consensus October exports. Health Care continued to underperform due to centralized medicine procurements and profit-takings on positive news about the Pfizer vaccine. Consumer Cyclical lagged as automobile stocks retreated after recent strong gains and media stocks, which had benefited from stay-at-home trends, fell. We expect the CSI to consolidate in the near term and investors should adopt a patient and selective approach.
Tag: Confirmed Uptrend
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trading near alltime highs, holding above 21-DMA support (S&P 500: 3,466; Nasdaq: 11,532) after reversing off intraday highs on Monday. The distribution day count stands at seven and six, respectively, with one expiring on the S&P 500 Monday and another on Tuesday.
European Focus
On Thursday, the Stoxx 600 ended 5.12% above last Friday’s close. Of the 17 indices that we cover, 16 are in a Confirmed Uptrend and one in an Uptrend Under Pressure.
US Focus
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq regained their respective 50-DMA this week and are now testing resistance at October highs (S&P 500: 3,550; Nasdaq: 11,965). The 10- and 21-DMA have begun to turn back up and will now act as near-term resistance should a pullback occur. The distribution day count stands at seven and five, respectively, with one day expiring on each Monday.
Market View
U.S. Market
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq regained their respective 50-DMA this
week and are now testing resistance at October highs (S&P 500: 3,550; Nasdaq: 11,965). The 10- and 21-
DMA have begun to turn back up and will now act as near-term resistance should a pullback occur. The distri-
bution day count stands at seven and five, respectively, with one day expiring on each Monday.
Market View
U.S. Market
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq held above their respective 50-
DMA (S&P 500: 3,408; Nasdaq: 11,305) following a low volume pullback to that level this week. That moving
average remains near-term support, while resistance remains 3,550 on the S&P 500 and 11,965 on the
Nasdaq. The distribution day count stands at six and three, respectively, with one day expiring on each next
week.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq held above their respective 50-DMA (S&P 500: 3,408; Nasdaq: 11,305) following a low volume pullback to that level this week. That moving average remains near-term support, while resistance remains 3,550 on the S&P 500 and 11,965 on the Nasdaq. The distribution day count stands at six and three, respectively, with one day expiring on each next week.
Market View
U.S. Market
The U.S. market remains in a Confirmed Uptrend. Indices are consolidating strong gains off their respective 50-
DMA. Support is at the rising 10-DMA (S&P 500: 3,459; Nasdaq: 11,580). The distribution day count is seven
and four on the S&P 500 and the Nasdaq, respectively, with two days expiring on each index next week.
US Focus
The U.S. market remains in a Confirmed Uptrend. Indices are consolidating strong gains off their respective 50-DMAs in prior weeks. Support is at the rising 10-DMA(S&P 500: 3,459, Nasdaq: 11,580). Distribution day count is seven and four on the S&P 500 and Nasdaq, respectively, with two days expiring on each index next week.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are building the right side of consolidation after breaking above short-term resistance (S&P 500: 3,430, Nasdaq: 11,400). Distribution day count remains elevated at seven and five, however, two days will expire on the S&P 500 and one on the Nasdaq next week.
