On Thursday, the Stoxx 600 closed 0.17% higher and had gained 0.74% from last Friday’s close. Today, the Stoxx 600 is trading constructively and has gained 0.54%.
Tag: Confirmed Uptrend
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trending into higher highs
above all moving averages. Near-term support is at the 10-DMA ( S&P 500: 3,181; Nasdaq: 8,786 ), followed by
the 21-DMA ( S&P 500: 3,153; Nasdaq: 8,690 ). Distribution remains at four days on both indices.
All 11 sectors, 179 of 197 industry groups, and 81% of S&P 500 stocks are trading above their respective 50-
DMA. Health Care, Consumer Cyclical, and Technology are each trading 5% or more above that level. Leading
industry groups over the last week include Auto Manufacturers ( TSLA ), Oil & Gas ( GPRK ), Data Storage ( MU ),
Semiconductors ( NVDA ), Lodging ( H ), Managed Care ( CI ), and Utilities ( NEE ).
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq made new alltime highs this week, continuing to trend higher above all major moving averages. Distribution stands at four days each with no expiration for two weeks.
European Focus
On Thursday, the Stoxx 600 ended the day 0.06% above last Friday’s close and remained in a Confirmed Uptrend. During the week, we downgraded the U.K. to an Uptrend Under Pressure. Of the 17 indices we cover, seven are in a Confirmed Uptrend, six are in an Uptrend Under Pressure, and four in a Rally attempt.
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped up off their 21-DMA after
pulling back sharply to this moving average earlier in the week. Despite the volatility, indices closed relatively
unchanged for the week. Support remains at the 21-DMA (S&P 500: 3,113; Nasdaq: 8,550) with three distribu-
tion days on the S&P 500 and four on the Nasdaq.
Ten of 11 sectors, 146 of 197 industry groups, and 67% of S&P 500 stocks are trading above their respective
50-DMA. Health Care is the best performing sector over the trailing four, eight, and 13 weeks. Additionally,
seven of 15 healthcare-related industry groups are ranked in the top 55 of the O’Neil 197 (Best=1, Worst=197)
led by Biotech ( INCY ), Outpatient Care ( ADUS ), Equipment ( DXCM ) and Managed Care ( UNH ).
We remain positive on the general market. Despite the pullback earlier this week, indices remain above moving
average support as leadership remains intact. Continue to selectively increase risk in quality ideas emerging
from early-stage consolidation.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped up off its 21-DMA after pulling back sharply to this moving average earlier in the week. Despite the volatility, indices closed relatively unchanged for the week. Support remains at the 21-DMA (S&P 500: 3,113; Nasdaq: 8,550) with three distribution days on the S&P 500 and four on the Nasdaq.
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq made new all-time highs this week
as both continue to trend higher off their respective 10-DMA. Distribution remains low at two days each, with
one expiring on the S&P 500 next week. We expect the market to consolidate gains in the coming days given the
sharp move higher over this past week. Should that occur, look for underlying action among quality growth
ideas to remain constructive.
Nine of 11 sectors are trading above their respective 50-DMA, led by Health Care which was up 1.7% this week
after recently breaking into new all-time highs. Technology is also leading, trending into all-time highs similar to
the major averages. Energy and Utility continue to lag, both trading relatively flat on the week and still ~1% be-
low their 50-DMA. 159 of 197 industry groups and 72% of S&P 500 stocks are trading above their respective
50-DMA, improving from 141 and 67% last week, respectively. The best performing industry groups this week
include Biotech (
), Software (
), Internet Retail (
), Lodging (
), Apparel (
), and Home Fur-
nishings (
).
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq made new alltime highs this week as both continue to trend higher off their respective 10-DMA. Distribution remains low at two days each, with one expiring on the S&P 500 next week. We do expect the market to consolidate gains in the coming days given the sharp move higher over this past week. Should that occur, look for underlying action among quality growth ideas to remain constructive.
European Focus
On Thursday, the Stoxx 600 ended the day 1.30% above last Friday’s close and remained in a Confirmed Uptrend. During the week, we upgraded the U.K. to a Confirmed Uptrend from a Rally Attempt after a follow-through day. Of the 17 indices we cover, 15 are in a Confirmed Uptrend, and two are in an Uptrend Under Pressure.
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq consolidated gains this week, trad-
ing slightly lower but remaining above all major moving averages. The 21-DMA (S&P 500: 3,079; Nasdaq:
8,423) remains a primary level of near-term support. The distribution day count is low at two days each.
Nine of 11 sectors, 141 of 197 industry groups, and 67% of S&P 500 stocks are trading above their respective
50-DMA. Health Care is trading ~7% above its 50-DMA after breaking into new all-time highs this week. The
best performing industry groups this week include Biotech ( VRTX ), Long-Term Care ( AMED ), Managed Care
( UNH ), and Software ( SPLK ).
We remain positive on the general market. Despite sideways consolidation among the major averages, underly-
ing action across growth-oriented ideas and groups was very strong. Multiple ideas are breaking out from con-
solidation and pushing into higher highs. We continue to recommend selectively increasing risk in quality ideas
as they emerge from sound bases.
