📊 Quantmatix Weekly Recap: Markets at a Crossroads 🚦
🛒 The TACO Trade Stays Hot
The market keeps buying dips like they’re on sale — even intra-day — driving volatility lower and tightening trading bands. The TACO trade (Tech, AI, Chips, Oligopolies) feels bulletproof. 🦾
Strangely, every piece of news is treated as good news. 🤔
⚠️ Daily Signals Say: Be Careful
While the weekly momentum stays strong, Quantmatix Daily Scores in both the U.S. 🇺🇸 and Europe 🇪🇺 are deteriorating, especially at key resistance levels.
📈 Weekly Trends Still Bullish
The medium-term picture for global equities remains positive, with no sign of a reversal in weekly signals. Weekly scores continue to rise, and positive reversals keep coming. ✅
But… the daily downtrend is gaining traction, and that’s what’s keeping us on alert. 🚨
U.S. Equities: Strength Meets Resistance
S&P 500 nearing the top of its weekly band, but 400+ daily stock scores are falling 📉
Tight upside (~+1.2%), with strong support at -2%, -4%, and -5%
Weekly scores remain solid, but the short-term deterioration is real
European Equities: Déjà Vu
Similar story: strong weeklies, weak dailies
SXXP, Stoxx 50, DAX, and CAC all gave top signals via Quantmatix daily alerts 🚫
Expecting near-term pullback of ~-1.5%, with deeper support ~-5% 🧭
💊 Bright Spots in Pharma
Even with the cautious stance, Pharma ETFs like XPH (U.S.) and SXDPEX (Europe) are looking increasingly attractive 🧬📈
🔚 Conclusion
There’s a worrying deterioration in a large number of single stock scores, which points to the potential for at least a mean reversion pullback. 📉
We noted last week that the expected pullback had occurred — but the subsequent bounce in a tight range on positive news (which was later reversed and ignored) suggests the market hasn't fully corrected.
Right now, the probability of a pullback is significantly higher than a topside breakout. 📉⬇️