Analyst Commentary:

• The S&P 500 declined 0.88% last week. The S&P 500 bullish percent, measuring the share of stocks on buy signals, crossed below 50% while at all-time highs in May for only the 3rd time historically, suggesting participation remains relatively narrow.

• Technology continues to rank 2nd in our sector rankings with over 225 signals. In the limited instances where tech signals have reached this level, forward one-year returns have tended to be sharply positive, suggesting further possible upside.

• Following a strong run that helped push markets higher, the semiconductor sub-sector has slowed down recently. The sector’s bullish percent has fallen to 50%, underscoring tighter, more concentrated leadership, despite its overall strength.

• Fixed income proxy AGG has a positive correlation of 0.27 to the S&P 500 over the last year, suggesting weaker diversification benefits. Meanwhile, commodities have served as a better diversifier with a negative 0.22 correlation.

• Amid rising inflation expectations and ongoing macroeconomic uncertainty, the 30-year Treasury yield reached an intraday high above 5.15% over the past week, marking its highest level since 2007.

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To read more on correlations, 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 Invesco Dorsey Wright Momentum ETF (PDP) seeks to provide exposure to U.S. equities that exhibit strong relative strength and momentum characteristics. The Fund is based on the Dorsey Wright® Technical Leaders Index, which uses a systematic, rules‑based methodology designed to identify securities demonstrating powerful price momentum relative to their peers. PDP is rebalanced periodically to reflect changing leadership trends, aiming to keep the portfolio aligned with areas of the market exhibiting the strongest momentum. To learn more about PDP, Click HERE.

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

This week, Miles Clark and Joseph Tuzzolo discuss market participation indicators, dispersion in sector performance, semiconductor sector participation, and aerospace and defense. To listen now, click HERE or on the image below. 

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