NDW Morning Pulse
Below are highlights from the NDW Morning Update Video for the morning of 09/03. Access the video on the NDW Morning Update Video page.
-
The Russell 200 Index (RUT) gained the most over the past day at 1.13%, followed by crude oil (CL/) at 0.88% and Emerging markets (EEM) at 0.57%. The Dow Jones (.DJIA) and the S&P 500 index (SPX) gained 0.56% and 0.45%, respectively.
-
With domestic equities moving into second place in the DALI asset class rankings, a few of the indicators have shown meaningful deterioration. After reversing lower last month, the S&P 500 Ten Week Indicator (^TWSPX) has continued to decline and now sits below the 50% threshold. This suggests that fewer than half of the index’s constituents are exhibiting near-term strength, reflecting a weakening breadth backdrop beneath the market’s headline performance.
-
Commodities have added 30 signals this week in the DALI asset class rankings, continuing a trend of gradual improvement. Despite the recent gains, the asset class remains firmly in third place and still trails second-ranked domestic equities by 76 signals, highlighting the sizable gap that remains before commodities can challenge for a higher ranking.
-
While commodities continue to show improving relative strength, that strength has not been driven by precious metals. Over the past week, both the SPDR Gold Trust (GLD) and the iShares Silver Trust (SLV) declined by roughly 4%, highlighting a loss of momentum and suggesting that recent commodity leadership has been concentrated in other areas within the asset class.
-
Yesterday’s research piece examined emerging weaknesses within the Communication Services sector, focusing on its relative performance versus Technology over the past six months. During that period, the performance spread widened to as much as 38% in favor of Technology, reaching the 99.7th percentile of historical observations.
