From the desk of Steve Strazza @Sstrazza

Our Top 10 Charts Report was just published.

In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.

New Lows for Big Tech

When it comes to the most important stocks, it’s all about tech. Mega cap technology companies dominate the US indexes and are in just about everyone's portfolio. The chart below illustrates just how paramount their performance is for the broader market. We have overlaid the relative trend between technology stocks and the S&P 500 with the Nasdaq 100 on absolute terms.

While the chart shows less than a year of data, the correlation between the two is consistently strong throughout all of history. This makes perfect sense as technology stocks represent roughly half of the weighting in the Nasdaq. Not only did we see new lows in a growing number of large cap tech stocks last week, but the group also made new 52-week relative lows at the index level. This kind of relative weakness tells us we should expect further downside for the market’s largest stocks. If that’s the case, the major...

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 big picture context 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:

• This week, our macro universe was negative, as 89% of our list closed lower with a median return of -2.90%.
• The Volatility Index $VIX was the winner, closing with a 15.40% gain.
• The biggest loser was Dow Jones Transports $DJT, with a weekly loss of -8.79%.
• There was a 3% drop in the percentage of assets on our list within 5% of their 52-week highs – currently at 6%.
• 11% of our macro list made fresh 4-week highs....

Key Takeaway:

• Thrust but verify.
• Fed up with higher rates.
• Worst six month stretch ever has investors in an exceedingly bad mood.

The June index-level lows are holding for now, but the response to the breadth and momentum thrusts that accompanied the summer rally has been somewhere between uninspiring and historically bad. On the one hand, the S&P 500 was essentially flat in the month following July 28 breadth thrust signal based on a surge in the percentage of stocks making new 20-day highs and even now is not outside the range of what has been seen in the past. The mid-August signal based on surging 40-day momentum, however, has been followed by unprecedented weakness.

These thrusts typically are evidence that conditions are improving and a sustainable rally is at hand. But that is usually verified by longer-term trends turning higher and consistently seeing more stocks make new highs than new lows...

Great weekend of Charts and Football for me!

How about you?

More Charts than Football? Or the other way around?

I definitely got a healthy dose of both.

And this one for me definitely stands out.

The way I learned it from Ralph Acampora many years ago was, "DON'T FIGHT PAPA DOW"

So here's the Papa Dow he was referring to. I included the key levels we've been focused on since the 2018 correction. They've really helped and I think they continue to.

But for today, let's focus on the fact that prices are both below overhead supply and above support from the summer lows.

From any sort of intermediate-term...

I know this might be breaking news to some of you, but there are often great opportunities to be had in international stocks. And the All Star Charts International Hall of Famers report regularly serves up the best setups out there.

Today's trade comes directly from the most recent report, so let's board the airplane and head abroad!

The next new trade in our Paid-to-Play portfolio is:

Here's something you don't see every day.

Silver showing a bullish divergence?

How could this not be the chart of the day?

Gold is making new multi-year lows this week, but Silver is pushing higher.

In fact, despite the recent pressure in Gold prices, Silver is going out at the highest weekly close since early August:

If there's one group that continues to stand out it's the Healthcare Providers.

We've been pounding the table again and again for one simple reason. The charts of the healthcare providers don't look like most of the other stocks.

These names are going from the lower left to the upper right. They're consolidating sideways, instead of lower.

This is what we call, "Relative Strength":

You know how I know we've been in a bear market?

Because investors got hammered. And not just in 2022, but over the past year and half.

But specifically, look at the average household over the past 2 quarters. They're seeing record losses:

Over the weekend, we've seen risk-off action persist following hotter-than-expected inflation data.

Following the Ethereum merge, most coins have sold off rather aggressively. Bitcoin now lies on a key level of support at its year-to-date lows, while a large number of altcoins have already made new lows.

For us to flip to a more bearish approach, we'd need to see Bitcoin confirm this internal weakness, which would manifest through a downward break of the 18,000 support band.

The largest insider transaction on today’s list is a Form 4 filing by two members of the Starbucks $SBUX board of directors, chair Mellody Hobson and member Richard Allison.

They reported purchases of SBUX worth a combined $5.9 million.

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.