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International equities are inching closer to domestic equities in our Dynamic Asset Level Investing (DALI) rankings. Since the end of October, we have seen international equities gain five relative strength (RS) buy signals, while domestic equities have lost three signals. This is not very significant movement based on the sharp price declines we saw from domestic stocks over the past week. However, these two asset classes have already been close in their RS buy signal tally count for several months. Domestic equities still maintain the top ranked position, but the door has been left open for some shifts as we close out the year.

These asset class rankings are built on a large RS matrix. Each asset class has an equal number of representatives included in the matrix, so no one area gets an unfair advantage. While the specific representatives are proprietary, it is important to know that they are meant to provide a diverse list of names for each asset class rather than just going with the biggest part of each market. Just like any RS matrix, the rankings have a buy rank (longer term) and an X rank (shorter term). The DALI rankings aggregate the number of buy signals, using that longer term number. What would the picture look like if we take the same tally concept and apply it to the shorter-term X rank?

The tally X rank actually amplifies the recent improvement for international equities, as we see that they move ahead of their domestic counterparts to take the top ranked near-term spot. Domestic equities sit in second, followed by commodities, which are further separated down into the third position. This echoes some of the recent signal shifts seen in the buy signal rank but could very well unwind with a few days of sharp action from each of the asset classes. Still, the improvement from international equities makes it worthwhile looking toward areas of strength to prepare for a potential asset allocation shift.

One area that has seen recent improvement in international equities is Latin America. This is shown through the sub-asset class rankings in DALI, where we have seen the Latin American region move from fifth (out of six spots) to second in just two weeks. The iShares S&P Latin America 40 ETF (ILF) has been indicative of that recent improvement. The fund has marched steadily higher since April, giving four consecutive buy signals while ascending to new multi-year highs at $31 earlier this month. This has been met with a sharp improvement in fund score, which comes in at a recent posting of 4.85 after rising over 1.8 points. Weekly momentum also recently flipped positive, suggesting the potential for further upside from here. The past two days of market action saw ILF retract from that extended position to a more actionable range just above the middle of its trading band. Those looking to focus on recent strength in foreign equities should keep ILF on their radar as we look toward 2026. Initial support is seen at $27.50 with further support down at $25.

Thursday’s Daily Equity Report highlighted the Positive Trend indicator for NYSE Stocks (^PTNYSE) reversing down into a column of Os to 50%, suggesting half of the roughly 1800 stocks within the NYSE universe maintain a positive trend on their point and figure trend chart. While ^PTNYSE chart resides at a level that isn’t too concerning yet, smaller universe PT charts reside at varying levels – with some providing minimal concern at the moment, while others have fallen to their lowest levels in some time.

For an examination of size and style groups below are the PT charts for the notable broad U.S. equity indices. The PT for the Nasdaq-100 (^PTNDX) was the first to reverse lower in August, while the PT for the S&P Small Cap 600 Index (^PTSPSML) was the last, doing so to finish off October. The PTNDX and PT for the S&P 500 (^PTSPX) maintain readings of 60% or higher, while the PT for the S&P Mid Cap 400 (^PTSPMID) sits above 50% - indicating that the majority of large and mid cap stocks continue to maintain positive overall long-term trends on their point and figure charts. Meanwhile, the PT for the S&P Small Cap 600 has fallen below 50%, suggesting the majority of small cap stocks now maintain sell signals. Many of the index PT charts sit at levels not seen since May or June, and apart from the S&P 500 PT, many saw their 2025 lows around 20% in April (the last notable dip in indicators).

Expanding the examination of long-term positive trend indicators further, below are the current column positions and readings of the NDW 40 Sector/Industry groups. The table to the left highlights the 16 PT charts that maintain a column of Xs, where long-term trends remain strong or are improving, while the table on the right shows the 24 PT charts that maintain a column of Os, where long-term trends are waning or have deteriorated entirely. Industries/sectors from more defensive broad sectors like utilities, basic materials, healthcare, and consumer staples primarily occupy the table where long-term trends are maintained (top of the table, high readings) or improving (bottom of the table, lower readings). Within the table on the right industries/sectors from broad sectors like financials and industrials are where long-term trends have begun to wane (top of the table, high readings still). While technology and consumer discretionary present mixed pictures, with some industries sustaining long-term trends and others seeing them deteriorate. For example, semiconductors and internet are areas of technology where long-term trends have waned, but reversals have come down from their highest levels in recent years. Conversely, the software industry didn’t quite see the same amount of increase off the April on its PT chart relative to others, and the chart has fallen into the mid-20s, indicating less than one out of every four stocks maintain above their bullish support line on their point and figure trend chart. Below are examples within the software industry that have recently violated its trendline, contributing to the PT’s deterioration, and one that has tested its bullish support line twice this month.

After reporting earnings that were in-line, Palo Alto Networks (PANW) failed to impress investors with underwhelming guidance along with an acquisition of Chronosphere for $3.4 billion. PANW shares fell from the upper $190s to the lower $180s intraday Thursday’s (11/21) action, violating support at $198 along with the bullish support line as shares fell through the mid $180s. The impact to the trend chart caused the stock to fall to a 4 for 5’er, with the market and peer relative strength charts maintaining a buy signal and a column of Xs sustaining PANW’s technical picture. Intraday action Friday brought shares down to test another level of support at $182. Beyond current support, additional can be found at $174 and $166, the August 2025 chart low. While the market and peer RS charts maintain a positive stance and are not near reversal into Os yet, both have seen the RS values pullback with the rapid decent Thursday. Owners of PANW may utilize the alerts system to not only mark support on the trend chart, but potential reversals into Os on the peer or market RS charts.

While among those stocks maintaining a positive trend, Intuit (INTU) has tested its bullish support line twice in November with the most recent being Thursday (11/20), prior to earnings. After beating on earnings and reaffirming guidance shares rebounded intraday Friday, returning the stock to a buy signal at $672 as shares rallied to $680. INTU continues to maintain a 3 technical attribute rating with positive long-term market and peer relative strength, along with the positive trend on the trend chart, sustaining the technical picture. With the bullish support line the nearest level of support on the trend chart and INTU exhibiting negative near-term relative strength on the market and peer RS charts, holders will look to closely monitor near-term price action from here. Owners of INTU will look to set alerts for the violation of the bullish support line along with a potential change in relative strength signal on both the market and peer RS charts.

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