Market backdrop stays constructive

Market backdrop stays constructive

Large-cap indices have pushed to new near-term highs while holding above their rising 10-day, 20-day, and 50-day moving averages. Higher highs, higher lows, no meaningful deterioration in price structure — the trend is doing exactly what a trend is supposed to do. Mid- and small-cap indices are joining in, pushing higher after bouncing off their 50-day moving averages. At the sector level, Technology remains the undisputed leader. Real Estate, Financials, Industrials, Healthcare, Materials, and Cyclicals are attempting to emerge from basing patterns — participation is improving, even if conviction is not yet fully there. Energy and defensive areas, meanwhile, are rolling over as money rotates away from prior leadership.

Gobble's Take: The bull has good posture and a clean stride. The laggards are just now waddling through the door.

Source: Market Pulse - AsymTrading Newsletter

Momentum still points up — but a pullback would not be shocking

Price is trading above rising key trend lines, and the path of least resistance remains up. That said, a pullback would not be surprising here, even if it is hard to be overly bearish. Beyond equities, the picture gets murkier: metals are losing steam, while Bitcoin and Treasuries remain stuck in their respective downtrends. Crypto may still have meaningful upside ahead — but a reclaim of the 30-week EMA is the condition worth watching before trusting that a true low is in.

Gobble's Take: Uptrend intact, caution noted, panic still not on the menu.

Source: Momentum Pulse Check: Which Segment Has The Best Trend ...

In Case You Missed It

Yesterday's top stories:

• IPO giants are back on the menu
• War, oil, and the market's favorite contrarian shrug