The Top/Down approach to markets is at the core of what we do at All Star Charts. That means starting at the asset class level and peeling back each layer to refine our view of the smaller components that make up that asset class. With each new layer, we discover information that helps us form our weight of the evidence conclusion.

That brings us to our new weekly column, The Top/Down Take, where we hope to educate readers on how we execute this process and highlight its value through the analysis of popular stocks.

Today, the stock we're looking at is Yes Bank.

Sector rotation continues, so this week we've got our eyes on a Pharma stock in the Small-Cap space.

We retired our "Five Bull Market Barometers" in mid-July to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

From the desk of Steve Strazza @Sstrazza

At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.

Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we're watching in order to profit in the current market environment.

This week, we're going to highlight the continued outperformance from offensive assets as well as the weakness we're starting to see from many defensive assets. This kind of action continues to suggest increasing risk-appetite and is supportive of higher prices within Equity and Commodity Markets.

From the desk of Louis Sykes @haumicharts

Welcome to the third edition of “Louis’ Look,” where I walk through the lessons I’ve learned over the past week through interning at All Star Charts. You can read the previous post here.

In this post, I want to step back from the market and focus on people. I really enjoyed writing this one, so buckle in.

As the U.S. continues to deal with the Coronavirus situation, it makes sense that stocks in the healthcare space should be doing well. There's a lot of attention and investment happening here to help deal with the calamity and prevent future spread.

Of course, as traders we don't need to read the headlines to know this. Following price and charts tells us everything we need to know.

One of our favorite names in the space is setting up nicely and it's time for us to get involved.

The words "Support" and "Resistance" get thrown around a lot. In most cases, it's stated as fact, "This level is resistance", or "There is support at that price". What is important to remember, however, is that these are only "Potential levels" of support and resistance. We may have evidence suggesting there could be overhead supply near a certain price, but we won't know for sure until after the fact.

Today I want to talk about how many Indexes in the U.S. are approaching "Potential" Resistance.

Let's take a step back and define what that actually means. Resistance is when there is an overwhelming amount of selling pressure vs buying pressure. There are more sellers, than buyers (or as the smart ass in the corner will mention, it could be one giant seller and not necessarily more of them, but I digress). Bottom line is, that Resistance is the price where there is more supply for an asset than there is demand for it.

The first obvious one is the S&P500 getting back to its February highs:

Healthcare stocks are breaking out to their highest levels in history. This isn't something where we're waiting for them to recover. We're betting that this is actually just the beginning. Healthcare stocks are going a lot higher if the S&P500 is going to 4000. That's the bet we're making.

Here is the Healthcare Index Fund $XLV closing at back-to-back all-time highs the past 2 weeks. I think there's another 14% if upside from here:

This week on the show, Howard and I talk about the winners and losers of the post Covid world. We spend a lot of time focused on the companies doing great things and building cool tools, but who are the ones getting left behind? Which ones are the shorts?

Here is the video in full. Enjoy!

From the desk of Steve Strazza @Sstrazza.

Welcome to this week's edition of "Under The Hood." You can read more about the column here.

What we do is analyze the most popular Robinhood stocks over the trailing week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We have some new additions coming for how we generate the list of most popular names, which we'll explain more each week as we add new data sets. This is a really exciting time for us. There are so many new data sources popping up so it's really just our responsibility to organize it to where it only tells us exactly what we want: An unusual increased level of interest for an asset.

Relatively speaking, it was an uneventful week for the overall market. The S&P 500 did a dead stop at its former highs and has been trading in a tight range since. However, the reason we do this type of bottoms/up work is because there is always plenty going on beneath the surface in individual stocks. So let's...

A Post-Earnings breakout to new all-time highs, coupled with a collapse in options premiums always gets my attention.

Add in that it's in a hot space like semiconductors and you'll fully capture my interest.

Last night we held a Happy Hour With Traders and discussed market internals and breadth with some of the best Technicians in the business. We focused mainly on the more popular aggregate breadth indicators such as the percentage of new highs and lows, the percentage of stocks above the 200-day, and so on.

We also talked a bit about our process for analyzing breadth on a more granular level, which is simply by looking at our universe of indexes, sectors, industry groups, and individual stocks each week. When we run our scans and look at the individual charts themselves, we continue to see a higher number of new highs and bullish momentum characteristics.

This is evidence of improving breadth.

This week's Mystery Chart was one of the latest Industry Groups we noticed making fresh all-time highs. In this post, we'll discuss the chart and offer some trade ideas in some of the groups' strongest components.

Interestingly, while this week's chart was quite similar to others we've used recently - a base breakout to fresh highs with strong momentum characteristics and well-...