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:
- Our macro universe had a positive week, with 72% of our list closing in the green with a median return of 0.36%.
- After multiple weeks of selling pressure, Lumber $LB was finally the big winner as it booked an 18% gain.
- Despite spiking higher on Monday, the biggest laggard this week was the VIX index $VIX, with a loss of -6.78%.
- Several US Large-Cap Growth indices finished the week at all-time highs, many of which also posted bullish reversals.
- 62% of the assets on our macro list are in bullish momentum regimes with 4% currently at extreme overbought readings.
- 68% of the assets on our macro list are within 5% of their 52-week highs.
- 45% of the assets on this list posted a new 4-week high and 23% made fresh all-time highs on the week.
International Universe:
- International equities’ performance was mixed this week as only 51% of our list closed higher with a median return of 0.32%.
- The biggest winner of the week was the Netherlands $EWN which gained 3.41%.
- China $FXI is showing continued weakness as they were this week’s biggest loser, dropping -3.65%.
- Finland $EFNL, Sweden $EWD, Netherlands $EWN, and the S&P 500 $SPY all posted a bullish reversal this week.
- Meanwhile, we saw a bearish reversal in China’s A-share ETF $ASHR.
- We saw some of last week’s damage repaired as the percent of assets on our international list within 5% of their 52-week highs ticked higher and is now at 44%.
- Momentum remains constructive from a structural perspective, as 67% of the ETFs on our list are still in bullish regimes.
- However, we continue to see weakening participation as 42% of our international list made new 4-week lows on the week and 24% made new 13-weeks lows.
US Sector Universe:
- US sectors saw a strong reversal after Monday’s selloff as 77% of our list closed in positive territory with a median return of 0.96%.
- The biggest winner of the week was Mid-Cap Cyclicals which gained 5.01%.
- Meanwhile, the worst-performer of the week was Mid-Cap Staples which fell by -2.32%.
- Seeing Discretionary outperform while Staples underperforms speaks to healthy risk appetite, but bulls need to see it continue.
- Momentum remains positive from a structural perspective as 74% of the assets on our list are in bullish regimes and 4% are at extreme readings.
- 15% of our list made new 4-week lows, while 28% made new 4-week highs.
- Equal Weight Industrials $RGI, Health Care $XLV, Technology $XLK, Communications $XLC, and the S&P 500 $SPY all posted bullish reversals this week.
- Leadership continues to be with the large-caps as not a single small or mid-cap sector has been able to reclaim its record highs.
US Industry Universe:
- Our US Industry universe also saw the bulls return this week as 78% of our list closed higher with a median return of 2.03%.
- Pharmaceuticals $XPH was this week’s big winner, gaining 6.14%.
- The biggest laggard was the Gold Miners ETF $GDX, with a loss of -2.27%
- $FDN, $HACK, $IGV, $IHF, $IHI, $IPAY, $ITB, $PHO and $XPH all posted bullish reversals.
- We’ll be watching closely to see if bulls can follow through higher on these candles next week.
- The percentage of our list in bullish momentum regimes fell this week and is now at a reading of 62%.
- 36% of the assets on our list are within 5% of their 52-week highs.
- 22% of our list made new 4-week lows and 22% made new 4-week highs as internals remain a mixed bag.
That’s it for this week’s highlights!
Thanks for reading and please let us know if you have any questions!
Allstarcharts Team
