Tag: Confirmed Uptrend

Market View

Posted on by Raj Gupta

U.S. Market 

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are testing resistance at or near
all-time highs with four and five distribution days, respectively. One distribution day expires on the S&P 500 next
week and two expire on the Nasdaq. Support remains the rising 21- and 50-DMA on both indices.
Eight of 11 O’Neil sectors are trading 1% or more above their respective 50-DMA, led by Utility, Energy, and
Health Care this week. 142 of 197 O’Neil Industry Groups and ~75% of S&P 500 stocks are also trading above
their respective 50-DMA. Notable moves higher this week came from Solar, Medical Equipment, Home Builders,
and Reits.

China A Shares

Posted on by Sandeeep N

The CSI 300 fell 0.9% for the week on slightly lower volume. The market remains in a Confirmed Uptrend with three distribution days. Disappointing industrial production, consumption, and fixed-asset investment data for August revealed pressure on China’s economy, which impacted market sentiment. The new one-year Loan Prime Rate was cut 5bps, in line with consensus and thus not a great boost to the market. The CSI 300 has immediate support at ~3,890 then at its 50-DMA (+3.2%). We look for immediate resistance at ~4,000 then at ~4,100. As global liquidity eases and positive domestic policies are introduced, risk appetite has increased. The electronics sector outperformed this week as Huawei and Apple unveiled new products. We expect the CSI 300 to continue consolidating in the short term, as sentiment may improve ahead of the National Day holiday, coupled with continued uncertainty surrounding trade talks. Investors are advised to be cautious and focus on quality growth leaders that have good prospects and benefit from recent policies. Avoid chasing extended ideas.

US Focus

Posted on by Sandeeep N

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are testing resistance at or near all-time highs with four and five distribution days, respectively. One distribution day expires on the S&P 500 next week and two expire on the Nasdaq. Support remains the rising 21- and 50-DMA on both indices.

Market View

Posted on by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 is now testing resistance at all-time highs, while
the Nasdaq is trading ~2% below that level. Distribution was unchanged this week at three and five days, respectively, with one expiring on each index on Wednesday. We will be looking for a breakout into new highs in
the coming days, however, to remain constructive on a potential pullback, we will be looking for the major averages to hold above their respective 21- and/or 50-DMA while avoiding any significant pickup in distribution. The
21-DMA is set to cross above the 50-DMA on both indices next week

US Focus

Posted on by Saminathan Jaganathan

The U.S. market remains in a Confirmed Uptrend. The S&P 500 is now testing resistance at all-time highs, while the Nasdaq is trading ~2% below that level. Distribution went unchanged this week at three and five days respectively with one expiring on each index Wednesday. We will be looking for a breakout into new highs in the coming days, however, to remain constructive on a potential pullback, we will be looking for the major averages to hold above their respective 21- and/or 50-DMA while avoiding any significant pickup in distribution. The 21-DMA is set to cross above the 50-DMA on both indices next week.

Market View

Posted on by Raj Gupta

The U.S. market has been moved back to a Confirmed Uptrend. The S&P 500 and Nasdaq are consolidating
gains after gapping above resistance at the 50-DMA. To remain constructive, we would like to see the 50-DMA
serve as support as more high quality ideas emerge from bases. Currently both indices are less than 2% off alltime highs with five distribution days on the Nasdaq and three on the S&P 500.

US Focus

Posted on by Midhun Parameswaran

The U.S. market has been moved back to a Confirmed Uptrend. The S&P 500 and Nasdaq are consolidating gains after gapping above resistance at the 50-DMA. To remain constructive, we would like to see the 50-DMA serve as support as more high-quality ideas emerge from bases. Currently both indices are less than 2% off all -time highs with five distribution days on Nasdaq and three on the S&P 500.

China A Shares

Posted on by Midhun Parameswaran

The CSI 300 dropped 0.6% for the week on slightly lower volume. The market remains in a Confirmed Uptrend with one distribution day. The Sino-U.S. trade war escalated this week and, though negotiations have resumed, the uncertainty still impacted market sentiment. We will be watching closely for trade news this weekend since new tariffs take effect September 1. We expect the CSI to continue consolidating around 50- and 100-DMA support; next support is at ~3,720. Short-term resistance lies at the upper gap of ~3,860. New policies to boost consumption, as well as the upcoming Mid-Autumn Festival and 70th National Day celebrations, are positive factors for the market. Investors are advised to stay patient and select quality growth ideas that have good earnings prospects and could benefit from these policies.

China A Shares

Posted on by Saminathan Jaganathan

The CSI 300 rose 2.97% on increased volume for the week. We upgraded the market condition to a Confirmed Uptrend on Monday after the index surged 2.17% on the news of interest rate reform and the plan to build Shenzhen into socialist demonstration area. The short-term risk preference and market sentiment recovered under the stimuli of domestic policies, but we believe the market is still volatile and the Monday follow-through day may fail. The CSI 300 regained its 50-DMA and 100-DMA, which serve as the next levels of support. We see immediate resistance near 3,850 and the next resistance near 3,900. The market is still facing a lot of uncertainties in the near term, thus we advise investors to stay cautious and patient, taking a disciplined approach to selecting quality growth ideas that have strong relative strength and are not extended more than 5% above a pivot.

US Focus

Posted on by Midhun Parameswaran

The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq continue to whipsaw below 50-DMA resistance. Though the Nasdaq did stage a day-six follow-through on Tuesday, gains were immediately wiped out Wednesday with instant distribution. Further, few quality ideas have been set up technically to buy with the majority chopping around within consolidation. Our primary expectation is that the August 5 lows (S&P 500: 2,822; Nasdaq: 7,662) are undercut and we eventually test the 200-DMA. This would result in the market status being moved back to a Downtrend. We would change our current cautious outlook should indices rally strongly, close, and importantly hold above their respective 50-DMA. Should that occur, we would move the market status back to a Confirmed Uptrend.