NDW Morning Pulse

Below are highlights from the NDW Morning Update Video for the morning of 08/20. Access the the video on the NDW Morning Update Video page. 

• The market posted broad-based gains over the past day, highlighted by a 2.96% rise in the Gold continuous contract (GC/), alongside advances of 1.18% in Emerging Markets (EEM) and 1.02% in the S&P 500 Equal Weight Index (SPXEWI).

• The S&P 500 Ten Week Indicator (^TWSPX) reversed back into a column of Os earlier this week as the percentage of stocks trading above their 10-week moving averages declined amid the recent bout of market weakness.

  • S&P 500 Bullish Percent Index, an intermediate-term breadth indicator that measures the percentage of stocks on Point & Figure buy signals, remains in a column of Xs. However, the indicator is approaching a reversal into a column of Os, meaning that continued market weakness could signal a deterioration in underlying breadth.

• International equities fell five points in the latest DALI Asset Class Rankings over the past few days, slipping to second place. As a result, domestic equities have reclaimed the top spot for the first time since February 2026. Prior to this shift, international equities had maintained the number one ranking since mid-March 2026.

• In light of the latest DALI ranking changes, we highlight yesterday's analysis comparing a portfolio invested in the top one or two ranked asset classes against a portfolio holding all six asset classes. Since 1999, a concentrated allocation to the highest-ranked asset classes has delivered meaningfully stronger performance than a fully diversified six-asset-class approach.

• The Health Care sector fund (XLV) rose 4.30% over the past week, continuing its recent improvement. The fund completed a bullish catapult pattern, producing its third consecutive buy signal and reaching a new all-time high. Given the broader market pullback earlier this week, the sector's defensive nature could position it as a relative beneficiary in the current environment.