A brief overview of the last week of negative market action.

Analyst Commentary:

• The S&P 500 dipped 0.63% last week, although the index still sits near all-time high territory. Intermediate-term participation has also ticked higher, with a higher percentage of stocks now on buy signals and contributing to the upside.

• The Federal Reserve cut the federal funds rate by 25 bps to its lowest level in three years. However, the 10YR treasury yield inched higher to return to a positive trend as investors anticipate fewer cuts ahead.

• Over the past three years, mega cap proxy XLG has tripled the return of the equal-weight S&P 500, underscoring some concentration risk. That said, leadership trends often endure, reinforcing the case for overweighting areas of strength.

• Healthcare continues to outperform in Q4, with biotech leading as the top-scoring sub-sector on our asset class group scores page. Still, the broader healthcare sector remains in the bottom half of sectors in terms of longer-term strength.

• After a strong 2024, the payment processing industry is showing technical weakness in 2025 as concerns over slowing consumer spending grow. Sector fund IPAY is down YTD and lags the strength of the broader financial sector.

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To read more on mega caps, you can read Monday'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.

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, we discuss gold vs. silver, interest rate movement, volatility levels, and more. To listen now, click HERE or on the image below. 

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