NDW Morning Pulse

Below are highlights from the NDW Morning Update Video for the morning of 08/27. Access the the video on the NDW Morning Update Video page. 

• The S&P 500 Equal Weight Index (SPXEWI) was the strongest-performing index over the past trading day, gaining 0.15% as broader markets edged modestly lower. Meanwhile, both the S&P 500 Index (SPX) and the Russell 1000 Index (RUI) slipped 0.02%, while Gold Continuous (GC/) fell 0.87%.

• The industrials sector has weakened notably, losing 16 signals since the start of the month and slipping to second place in the DALI sector rankings. Meanwhile, healthcare has continued to demonstrate resilience, retaining its strength and advancing into the top position over the past week, establishing itself as the current market leader.

• The S&P 500 Bullish Percent Index, an intermediate-term participation measure that tracks the percentage of stocks on Point & Figure buy signals, reversed into a column of Os on Monday, signaling a decline in market participation. Despite this short-term deterioration in breadth, the S&P 500 Percent Positive Index, a longer-term measure of underlying strength, remains at a healthy 70%, suggesting the market's broader trend remains constructive.

• Yesterday's research piece (8/26) highlighted the quiet but steady improvement taking place across the commodities asset class. Since the start of Q3, commodities have experienced more than a 20% increase in DALI asset class signal counts, signaling strengthening underlying breadth. Additionally, copper, traditionally viewed as a more risk-on asset, recently rolled over into Os against gold, a classic defensive asset, on its default relative strength chart. To read more, click here.

• Several market-moving earnings reports are on deck over the coming week, including Marvell Technology (MRVL, 5/5 TA Score) on 8/27, Dell Technologies (DELL, 5/5 TA Score) on 9/1, Palo Alto Networks (PANW, 5/5 TA Score) on 9/1, and Broadcom (AVGO, 3/5 TA Score) on 9/2. These reports could provide important insight into the health of key technology and artificial intelligence-related themes that have been driving market leadership.