Analyst Commentary:

• The S&P 500 was up 0.11% over the past week, showing slight improvement after a largely flat trend in recent weeks. The index is up 0.5% in December as it continues to tread water by all-time highs.

• The percent of the S&P 500 trading in a positive trend reversed back up, demonstrating an increase in long-term participation for large caps. Historically, SPX has seen slightly above average forward returns following reversals.

• The bullish percent for the S&P Small Cap 600, an intermediate-term participation indicator, also reversed back up last month to healthy levels near 60%. Small caps have continued to show strength in recent months. 

• Despite worse housing affordability dominating discussions in recent years, home sales and price growth have been subdued in 2025. Homebuilders proxy ITB now holds a weak fund score below 2.0, underscoring industry weakness.

• Since the start of Q4, the Basic Materials sector has gained 22 signals in our DALI sector rankings, overtaking financials over the past week. Basic materials now sits in 4th place in our DALI sector rankings, just shy of overweight territory.

• Interested in finding out where the "Weight of the Evidence" sits for major markets as we move into 2026? Join our team of experts on Thursday, January 8th, at 1:00 PM EST for our webinar. See you there!

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To read more on participation indicators, you can read Friday's pulse 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.

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