Below are the notes from the morning video on 8/26
Below are highlights from the NDW Morning Update Video for the morning of 08/25. Access the the video on the NDW Morning Update Video page.
- It was a mixed day for the major names we typically look at, although most of the domestic space struggled for the day. The S&P 500 declined roughly a quarter of a percent. Crude Oil (/CL, -2.35%) Emerging Markets (EEM, -1.5%) and the Russell 2000 (RUT, -.76%) led the way to the downside for the day.
- With the negative action, one of NDW’s flagship indicators reversed lower on its default chart. Measuring the percentage of S&P 500 stocks trading on PnF buy signals, (^BPSPX) reversed back down into O’s to a chart reading of 64%. While this certainly isn’t positive, it is worth noting that the wide majority of historical market action occurs around similar levels. Set alerts for further declines which would signal a concerning decline in participation.
- Gold has continued to perk up as it now trades just above the top of its respective trading band. While it still sits a ways away from its previous 2026 highs, there have been interesting relative developments- namely against other metals. A closely watched 3.25% RS relationship between CPER & GLD reversed back in favor of GLD in the near-term.
- Semiconductors struggled yesterday, seeing PTSEMI move lower to 42%. Said plainly, less than half the semiconductor space now trading in a long-term positive trend. While a tad concerning, it is worth mentioning that semiconductors are no stranger to concentrated leadership from just a handful of names. MU returned to a sell signal on its default chart, clearly confirming some resistance around $1,008-$1,024. The semi space will closely watch NVDA earnings later this week.
