Tag: Confirmed Uptrend

Market View

Posted on by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped higher on Friday, closing up 4.9% and 3.4%, respectively, for the week. The S&P 500 now faces resistance at ~3,214, while the Nasdaq is testing new highs at 9,838. Distribution remains a non-factor at three days and one day, respectively.

Ten of 11 sectors closed higher this week, led by Energy, Consumer Cyclical, and Capital Equipment. Long-term leading sectors Health Care, Retail, and Technology lagged for a second straight week, with Health Care the only sector to decline. All sectors remain firmly above their respective 50-DMA, and now eight are trading above their respective 200-DMA, up from just three last week. Industry groups with the sharpest improvement in rank over the last two weeks include Gaming, Home Furnishings, Leisure Products, Apparel, Mobile Homes, Building Products, and Semiconductors. 98% of S&P 500 stocks are trading above their respective 50-DMA and 57% are now trading above their respective 200-DMA. This is up from 95% and 42%, respectively, last week.

With indices stretched from short-term moving averages, we do expect consolidation next week. As that occurs, we will be looking for high quality growth ideas to hold at logical levels of support or continue to trend constructively into new highs. As indices push higher, more and more ideas across numerous sectors continue to surface. We recommend buying the higher quality ideas that are breaking out from consolidation or rallying off logical levels of support, while also offensively locking in partial gains in ideas that have become well extended from
prior pivot points.

US Focus

Posted on by Sandeeep N

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped higher on Friday, closing up 4.9% and 3.4%, respectively for the week. The S&P 500 now faces resistance at ~3,214, while the Nasdaq is testing new highs at 9,838. Distribution remains a non-factor at three days and one day, respectively.

Market View

Posted on by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied strongly for a second straight week, closing near weekly highs on Friday. Near-term support for the S&P 500 is now the 200-DMA (3,002) and resistance is now March highs at 3,136. Support for the Nasdaq remains the rising 10-DMA (9,300) followed by the 21-DMA (9,100), with resistance at 9,542. Distribution stands at four and two days, respectively, with two days expiring on the S&P 500 and one on the Nasdaq next week.

 

All sectors closed higher for the week, led by Capital Equipment, Utility, and Transportation. Long-term leading sectors Health Care, Retail, and Technology lagged for the week, despite a strong recovery on Thursday and Friday. All sectors remain firmly above their respective 50-DMA, though only three are trading above their respective 200-DMA. Industry groups with the sharpest improvement in rank over the last two weeks include Home Furnishings, Leisure Products, Building Products, Solar, and Trucks. Top ranked industry groups outperforming over the last five sessions include Discount Retail, Telecom, Design Software, Software Security, Semiconductor Equipment, Payment Processors, and Managed Care. 95% of S&P 500 stocks are trading above their respective 50-DMA and 42% are now trading above their respective 200-DMA. This is up from 82% and 31%, respectively, last week.

 

We maintain a positive view of the general market. Though growth ideas pulled back off highs early in the week, the majority recovered strongly off support and moved back toward highs. This, while long-term lagging sectors have begun to rally sharply off lows, including Capital Equipment, Transportation, and Consumer Cyclical which have jumped by double digits in less than two weeks. Current leadership is holding while new leaders are emerging. Continue to increase risk in fundamentally sound ideas coming out of constructive bases while also reducing risk in ideas that have become well extended from short-term moving average support and likely to base over the next several weeks.

US Focus

Posted on by Sandeeep N

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied strongly for a second straight week, closing near weekly highs on Friday. Near-term support for the S&P 500 is now the 200-DMA (3,002) and resistance is now March highs at 3,136. Support for the Nasdaq remains the rising 10-DMA (9,300) followed by the 21-DMA (9,100), with resistance at 9,542. Distribution stands at four and two days, respectively, with two days expiring on the S&P 500 and one on the Nasdaq next week.

US Focus

Posted on by Sandeeep N

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to display resilient action, gapping up Monday and constructively holding gains throughout the week. The S&P 500 is still trading just below 200-DMA resistance, while the Nasdaq is again approaching upper channel line resistance. Distribution stands at four and two days respectively, with no expiration next week. Support remains the rising 10- and 21-DMA.

China A Shares

Posted on by Saminathan Jaganathan

The CSI 300 dropped 1.28% this week and remains in a Confirmed Uptrend with two distribution days added for a total of four. A significant amount of important financial and economic data was released during the week, impacting market sentiment. China’s new yuan loans and year-over-year money supply growth in April beat expectations, indicating that monetary easing had been effective in maintaining liquidity. A larger-than-expected PPI decline (-3.1% versus -2.6% y/y consensus) and weaker-than-expected retail spending (-7.5% versus -7% y/y consensus) in April suggest greater-than-expected pressures on growth. The market is watching the upcoming “two sessions” meeting next week and expecting fiscal stimulus. Meanwhile, rising China-U.S. trade frictions have also damaged investors’ appetite for risk. We recommend investors stay moderately cautious amid clustering distribution and low trading volume. Avoid ideas that would be vulnerable to a trade war. The CSI 300 failed to hold above its 100-DMA and we see immediate support at the 200-DMA (3,900, -0.3%), followed by the 50-DMA (3,837, -1.9%) and ~3,738 (-4.4%). Resistance remains at the gap of ~4,028 (+3.0%), followed by ~4,135 (+5.7%).

US Focus

Posted on by Saminathan Jaganathan

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq staged back to back upside reversals to close the week, holding above key support levels and keeping an overall low distribution count. Distribution now stands at three days on the S&P 500 and two on the Nasdaq, with no expiration for two weeks. To remain constructive, we would like to see the S&P 500 and Nasdaq hold above Thursday’s intraday lows at 2,766 and 8,705, respectively.

Market View

Posted on by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied strongly this week, with the
Nasdaq now positive for the year. The next level of resistance for the S&P 500 is the flattening 200-DMA at
~3,000, while the Nasdaq faces resistance at ~9,315. Support for both indices remains the rising 10- and 21-
DMA. Distribution has been a non-factor with both indices at just two days.
Energy, Technology, and Consumer Cyclical led this week, each rising more than 6%. Ten of 11 sectors are now
trading above their respective 50-DMA, up from just five last week. Top ranked industry groups outperforming

over the last week include Enterprise Software, Database Software, Financial Software, Software Security, Semi-
conductors, Electronic Measuring, Internet, and Biotech. 73% of S&P 500 stocks are now trading above their re-
spective 50-DMA, up from 51% last week.