A brief overview of last week's market action.

Analyst Commentary:

• The S&P 500 was up 0.65% last week. The percent positive for the S&P 500, which measures the percentage of stocks in the index that trade in a positive trend, maintains a chart level of 56%, highlighting long-term strength.

• The SPX index has completed its first sell signal since March, pointing to near-term weakness. However, underlying sector strength remains skewed toward risk-on assets, indicating continued preference for higher-risk exposure.

• With markets pricing over a 50% chance of a December 2026 rate hike, domestic equities may face growing headwinds into year-end. Historically speaking, elevated borrowing costs associated with higher rates can hinder equity markets in the near term.

• Small cap groups continue to rank among the top performers in our asset class group scores page, signaling sustained near-term strength. Still, on a longer-term basis, large cap options maintain their leadership role as we close out Q2.

• The technology sector (XLK) is down 3.3% so far in June. While near-term participation has softened in the group as evidenced by NDW’s 10-week indicators, the sector is still up 28.1% year-to-date and continues to rank as one of our top sectors.

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To read more on Technology, 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. 

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 Trevor Plesko discuss the S&P 500, technology strength, weakness in Homebuilders, and Bitcoin. To listen now, click HERE or on the image below. 

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