Market Monitor November 26

Highlights

• US stock markets closed slightly positive, investors seem little concerned about Trump's proposed 25% tariffs on imports from China, Mexico and Canada.

• GM and Ford did fall 9% and 2.6%, respectively, due to their large exposure to Mexican and Canadian imports.

• Retail shares struggled due to cautious consumer spending.

• Kohl's fell 17% to its lowest level since 2020 after lowering its full-year expectations, citing diminishing benefits from cost savings and a difficult retail environment.

• Dick's Sporting Goods posted strong results and raised its forecast, with expected comparable sales growth between 3.6% and 4.2%. Despite the strong performance, shares fell 1.4% due to negative retail sentiment.

Major ETFs Overview:

SPY (S&P 500 ETF):

• Slight increase of +0.52% today.
• The ETF remains in a strong uptrend in both short-term (ST) and long-term (LT) trends.
• Over the past month, SPY has gained 3.32%, continuing its bullish trajectory.

QQQ (NASDAQ 100 ETF):

• Positive day with a +0.54% rise.
• Similar to SPY, QQQ shows strong trends in both the short- and long term.
• The 1-month performance is +1.18%, while the 12-month gain is impressive at 36.61%.

IWM (Russell 2000 ETF):

• Declined slightly by -0.73%.
• Still retains a positive long-term trend, with a strong +8.51% gain over the past month.

Sector Performance:

1 Week:

• Information Technology and Health Care sectors outperformed significantly.
• Industrials and Communication Services also showed strong weekly gains.
• Sectors like Energy and Materials lagged.

1 Month:

• Information Technology and Industrials continue to dominate with notable strength.
• Sectors such as Real Estate and Materials underperformed during this period.

3 Months:

• The Information Technology sector leads in long-term performance, followed by Industrials and Financials.
• Defensive sectors like Utilities and Consumer Staples are weaker.

All info available on our Sector Performance page

Historical Breadth Numbers:

Today (November 26, 2024):

• Advancing stocks (Adv Day): 37.9%.
• Stocks above key moving averages: SMA(20+): 57.8%. SMA(200+): 60.6%.

Market breadth is mixed, showing moderate strength in moving average metrics but fewer advancing stocks compared to recent days.

Last Week Trend:

Breadth was stronger last week (e.g., Nov 22: 72.2% Adv Day), highlighting that momentum has slowed somewhat.

All info available on our Market Monitor page

Key Observations:

• The market continues to favor growth and technology-heavy sectors, reflecting strong performance in ETFs like QQQ and SPY.

• The Russell 2000 (IWM) lags slightly today, signaling underperformance among smaller-cap stocks.

• Momentum remains strong overall, as many stocks are still above their short- and long-term moving averages.