A Shift in Tone: The Data Turns More Positive 📈
After several weeks of caution, the data is now pointing us in a more optimistic direction. Our latest data at Quantmatix suggest the market may be gearing up for a steady move higher — and we’re adjusting our positioning accordingly.
What's Changed?
1. Our daily market signals are improving.
Across both the U.S. and European markets, our daily and weekly scores are now moving higher. This is the first time in a while that we’ve seen consistent upward momentum in both regions. ✅
2. More positive signals tipping the balance.
This week saw a clear shift: the number of positive daily signals outweighed the negatives — a sign that investor sentiment is strengthening. 🔄
3. Trading Bands are pointing up.
Our proprietary Trading Bands (which help us visualize likely market ranges) are now sloping upward. This change suggests there’s more room for the market to climb. 🚀
4. Resistance levels may be broken.
U.S. and European indices are sitting just below key resistance levels — but the data suggests they could break through. Importantly, strong support lies just 3% below current levels, offering a cushion in case of short-term pullbacks. 🛡️
What’s Next?
We’re not ruling out a minor pullback — maybe around 3% — but we’d see that as a buying opportunity, not a reason to get defensive.
Where We See Strength
We’re especially enthusiastic about two themes right now:
💊 Pharma (U.S. and Europe)
🔋 Energy
Both sectors are showing strong data-driven support and offer attractive opportunities in the current environment.
Stay tuned for more data-driven insights as the landscape continues to evolve. As always, our moves are guided by what the numbers are telling us — not just gut feel.
— QM Trades