Analyst Commentary:

• The S&P 500 fell 1.60% over the past week, marking its fourth straight weekly decline as U.S. equities struggle to gain traction early in 2026.

• The financial sector proxy XLF has started the year down double digits—its weakest start since 2020. In our sector rankings, financials now sit in sixth place, a sharp reversal from their top‑ranked position roughly one year ago.

• Energy commodities have been supported by ongoing Middle East tensions and a surge in demand for AI infrastructure. Commodities surpassed international equities last week to take the top spot in our relative strength asset class rankings.

• The NYSE bullish percent, an intermediate‑term indicator measuring the percentage of stocks on buy signals, reversed lower earlier this month and continues to decline, highlighting a decrease in participation.

• After a stellar run in the years leading into 2026, the Magnificent 7 have stumbled out of the gate. The MAGS ETF is down more than 8.5% year‑to‑date, signaling notable weakness among mega‑cap stocks.

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To read more on the Magnificent 7, you can read Wednesday'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, Miles Clark and David Clark discuss commodities moving up in our asset class rankings, the Mag 7 showing near-term weakness, crude oil experiencing notable volatility as it continues to improve, and bitcoin reversing slightly from its lows. To listen now, click HERE or on the image below. 

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