A brief overview of last week's positive market action.

Analyst Commentary:

• The Nasdaq-100 (NDX) hit a new all-time high last week, rising as the Federal Reserve announced a cut in rates for the first time this year. The bullish percent for NDX is currently at 62%, indicating that over half of stocks in the Nasdaq-100 trade on a buy signal.

• The Russell 2000 (RUT) rose 2.2% last week to close at an all-time high for the first time since 2021. Small caps have improved to acceptable territory with rate cuts pushing the group higher, but large caps still hold more long-term strength given their consistent outperformance.

• Bond proxy AGG reached its highest level since September 2024, leaving the fund in overextended territory in the short-term. While the improvement in fixed income is encouraging, the asset class sits in last place within our relative strength rankings. 

• Emerging market fund EEM retook long-term strength versus the equal weight S&P 500 (SPXEWI), but it remains unfavored versus the cap weight S&P 500 (SPX). While international equities remain strong, few areas look stronger than mega cap domestic equities.

• Despite gold's (GC/) strong performance this year, silver has also quietly put on a show with SLV up over 48% year-to-date. Precious metals continue to be an area of relative strength within commodities, ranking fourth among all groups in the asset class group score page.

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Nasdaq Dorsey Wright’s Weekly Featured Chart:

To read more on small caps, you can read Friday's featured article HERE.

Major US Index Technical Review:

A summary of the performance of major indices, in addition to their Point & Figure information. 

The Group Score Minute:

Senior Equity Specialist Steve Raymond dives into the latest trends and changes within our Asset Class Group Scores. To listen now, click HERE or on the image below. 

Nasdaq Dorsey Wright Products:

The AdvisorShares Dorsey Wright FSM U.S. Core ETF (DWUS) is comprised of 2 ETFs—primarily in domestic large-cap equities—that demonstrate in our opinion, favorable relative strength characteristics.  During periods in which the Advisor believes the market indicates broad equity weakness and cash strength, the Fund invests in fixed-income ETFs with a short or ultra-short duration, money market funds, cash and cash equivalents.  To learn more about DWUS, Click HERE.

Want More? Don't Miss Out on Our Podcasts!

This week, David and Miles discuss recent rate cuts and what it means for the fixed income space, as well as recent developments for small caps, gold and stock participation. To listen now, click HERE or on the image below. 

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