Market Commentary - February 14, 2019

|
Includes: BIBL, CHGX, CRF, DDM, DIA, DMRL, DOG, DUSA, DXD, EDOW, EEH, EPS, EQL, EQWS, ESGL, FEX, FWDD, GSEW, HUSV, IVV, IWL, IWM, JHML, JKD, OMFS, OTPIX, PMOM, PPLC, PSQ, QID, QLD, QQEW, QQQ, QQQE, QQXT, RSP, RVRS, RWM, RYARX, RYRSX, SCAP, SCHX, SDOW, SDS, SFLA, SH, SMLL, SPDN, SPLX, SPSM, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TNA, TQQQ, TWM, TZA, UDOW, UDPIX, UPRO, URTY, USA, USMC, UWM, VFINX, VOO, VTWO, VV, ZF
by: Robert W. Baird & Co.
Summary

Relative strength from equal-weight indexes and an expansion in the percentage of stocks above their 200-day average point to encouragingly broad rally participation.

Deteriorating sector-level trends and a return to investor optimism suggest rally strength could soon be tested.

In addition to the deterioration in sector-level trends, our growing concern about a testing phase emerging comes from evidence that short-term sentiment has flipped from pessimism to optimism.