NDW Morning Pulse

Below are highlights from the NDW Morning Update Video for the morning of 10/01. Access the video on the NDW Morning Update Video page. 

• Markets moved modestly lower over the past day (through 9/30). The S&P 500 (SPX) declined 0.25%, followed by the Russell 2000 (RUT) down 0.39%, the S&P 500 Equal Weight Index (SPXEWI) down 0.75%, and emerging markets (EEM) lower by 0.91%.
• The Percent Positive for the S&P 500 (^PTSPX) reversed lower in early September and has continued to deteriorate. The indicator now stands at 48%, signaling that fewer than half of the index's constituents remain in positive trends and suggesting underlying long-term weakness beneath the broader market.
• The technology sector climbed to the top spot in our DALI sector rankings last week and continued to strengthen, adding 15 signals over the past week (since 9/22) and reinforcing its leadership position. Healthcare remained close behind in second place, also showing relative improvement with a gain of five signals over the same period.
• On the earnings front, a few major companies are expected to report earning over the next week: Accenture PLC (ACN 3/5 TA Score on 10/1), NIKE, Inc. (NKE 0/5 TA Score on 10/1), and PepsiCo, Inc. (PEP).
• Yesterday’s research highlighted the latest reconstitution of the Invesco Dorsey Wright Momentum ETF (PDP). Despite a challenging Q3 amid shifting market leadership, the strategy rotated into areas of improving relative strength, with healthcare, technology, and select financials emerging as leaders while industrials continued to weaken.