A brief overview of last week's market action.
Analyst Commentary:
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The S&P 500 was down 2.59% last week. The ten week for the S&P 500, an indicator measuring the percentage of stocks trading above their 10-week moving average, reversed back up, highlighting an increase in near-term participation.
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Since 1957, there have been only nine prior instances where the S&P 500 gained more than the recent 19.57% rally over the prior two months. In those cases, forward 1-year returns averaged ~26%, suggesting further upside potential.
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Emerging markets pushed higher, then slumped, with EEM reaching a fresh all-time high before pulling back around 8%. Within the group, Taiwan proxy EWT and South Korea proxy EWY stand out as high relative strength areas.
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With IPO activity picking back up, history shows mixed outcomes: short-term returns can be strong, but 1-year forward returns for many large recent IPOs have averaged double-digit losses, underscoring the potential for underperformance.
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Earnings remain strong, justifying recent upside in equities. Over the past quarter, more than 80% of S&P 100 (OEX) constituents have beaten earnings estimates, well above the long-term average of 69% dating back to 2011.
Nasdaq Dorsey Wright’s Weekly Featured Chart:
To read more on IPOs, 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 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 Ian Saunders discuss the S&P 500, sector rankings and technology's rapid rise, new IPOs over the next few months, and Bitcoin's lack of strength. To listen now, click HERE or on the image below.
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