From the desk of Steve Strazza @Sstrazza
Check out this week’s Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.
By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the context of the big picture and provides insights regarding the structural trends at play.
Let’s jump right into it with some of the major takeaways from this week’s report:
* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.
Macro Universe:
- There was broad weakness from risk assets in our macro universe this week as 66% of our list closed lower with a median return of -0.74%.
- The Volatility Index $VIX was the big winner, closing out the week with more than a 14% gain.
- The biggest loser again this week was Lumber, with another massive loss of -23.64%
- Emerging Bonds $EMB posted a bullish reversal weekly candle.
- The S&P 400 Index $MDY posted a bearish reversal this week.
- Only 9% of our macro universe closed higher than last week’s high and over a quarter of our list made new 4-week lows.
- Strength continues within fixed income as $IEI, $TLT, and $AGG all made 13-week highs while $TIP finished the week at an all-time high.
- 66% of the assets on our macro list are in bullish momentum regimes.
- 62% of the assets on our macro list are within 5% of their 52-week highs.
International ETF Universe:
- International equities experienced further pressure this week as 84% of our list closed lower with a median return of -1.25%.
- Egypt $EGPT bucked the trend this week with a 1.93% gain.
- Nigeria $NGE was this week’s biggest loser dropping a massive -5.30%.
- $EGPT and Mexico $EWW posted a bullish reversal, while Greece $GREK printed a bearish reversal.
- The percent of assets on our international list within 5% of their 52-week highs continues to slide and is now sitting at just 36%.
- Momentum regimes remain constructive from a structural perspective, as 78% of the ETFs on our list are bullish.
- With the weakening participation, 56% of the assets on our international list made new 4-week lows on the week and 31% made new 13-weeks lows.
- New highs were non-existent across all timeframes...
US Sectors Universe:
- US Sectors had a rough week as well as 85% of our list closed in negative territory with a median return of -2.45%.
- The biggest winner of the week was large-cap Utilities $XLU which gained 2.59%.
- The biggest loser of the week was small-cap Energy $PSCE which dropped a hefty -12.93%.
- Despite the weakness, momentum has remained positive from a structural perspective, as 85% of the assets on our list are still in bullish regimes.
- 43% of our list posted new 4-week lows this week, while only 15% made new 4-week highs.
US Industry ETF Universe:
- Our US Industry universe saw continued weakness as 100% of our list closed lower on the week with a median return of -3.62%.
- Oil & Gas Exploration & Production $XOP was this week’s big loser dropping a massive -12.32%.
- Copper Miners $COPX, Cybersecurity $HACK, Networking $IGN, Semiconductors $SOXX, and Metals & Mining $XME all posted bearish reversals this week.
- Momentum regimes remain positive from a structural perspective, as 78% of the assets on our list are bullish. However, the median RSI has dropped to 39.
- Only 24% of the assets on our list are within 5% of their 52-week highs. This has deteriorated considerably in recent weeks.
- 56% of our industry universe closed below their prior week's range.
- 69% made new 4-week lows and 29% made new 13-week lows. This is the most meaningful downside expansion we've seen in a long time.
That’s it for this week’s highlights!
Thanks for reading and please let us know if you have any questions!
Allstarcharts Team
