A brief overview of last week's market action.

Analyst Commentary:

• The S&P 500 fell 2.02% over the past week, breaking key support levels and triggering its first sell signal since November 2025, underscoring the index’s early‑2026 struggles.

• Amid heightened volatility driven by the Iran conflict, market history shows that the S&P 500’s 1‑year forward returns in similar periods have remained strong, reinforcing that wartime events tend to have limited long‑term impact on equities.

• With markets flat year‑to‑date, investors are rotating out of names at risk from AI and into asset‑heavy, low‑obsolescence sectors. In our sector rankings, Industrials, Energy, and Basic Materials show their highest combined signal count since 2022.

• International equities pulled back last week, with emerging‑markets proxy EEM entering a 10% correction. Even so, international markets remain firmly ahead of U.S. equities atop our asset class rankings.

• After dropping 50% from its late‑2025 highs, Bitcoin has rebounded roughly 15% from the lows. However, declines of this magnitude often see short‑term rebounds before ultimately resuming lower over the following year.

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To read more on the S&P 500, you can read Tuesday'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, Ian Saunders and John Lewis discuss the performance between leaders and laggards, changes in the asset class and sector rankings, and the importance of having a process in place. To listen now, click HERE or on the image below. 

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