Technical Strategy - Mark L. Newton, CMT

Technical analysis tracks price movement, volume, seasonality, sentiment, and trading flows to identify and project price trends, targets, and exhaustion. Used to seek out attractive risk/reward opportunities and highlight up/down trends in equities, treasuries, currencies, commodities and cryptocurrencies, technical analysis is fundamentals-agnostic and uses the following methodologies.

About the Strategist

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Mark L. Newton, CMT – Head of Technical Strategy

As former managing member/owner of Newton Advisors LLC, Mark has more than 25 years of buy-side and sell-side experience in finance. Before Fundstrat, he worked with Diamondback Capital Management, and with Morgan Stanley in New York City as their technical strategist. Mark has traded equity options as a market maker/floor trader on the CBOE, and worked in risk management. He is a member of the Market Technicians Association, and former member of the CBOE, CBOT, and PHLX. Mark makes regular appearances on CNBC, FOX Business, and Bloomberg. Mark graduated with a BS in Finance from Virginia Tech in 1991, and obtained his Chartered Market Technician designation in 2002.

Our Approach

Trend Identification

On a daily, weekly, and monthly basis

Structural Analysis

Looking at former highs and lows as potentially important for resistance and/or support in trading over multiple time frames

Trendline Utilization

Drawing trendlines extending from the lowest lows to the low preceding the highest highs

Fibonacci Analysis

Using the concept of Fibonacci for retracements in both time and price terms for identifying possible areas of exhaustion

Momentum Analysis

Seeking stocks exhibiting positive momentum for long investments over multiple time frames

Volume Analysis

Noting heavy volume, or lack thereof, in conjunction with price gains to track the duration of a trend

Breadth

Studying the underlying health of a market, especially for broader indices

Ratio charts

Comparing a stock to its industry and/or to an underlying index, such as SPX

Relative Strength

Seeking out stocks exhibiting stellar strength and trading at/within striking distance of 52-week highs (for long stock selection)

Counter-Trend Analysis

Using Tom DeMark's indicators, such as TD Sequential and TD Combo, to identify strong trends possibly on the verge of reversing course: downside to upside or vice-versa

Cycles

Using cycle composites to understand the most commonly seen cycles dictating patterns of low-to-low or high-to-high to help identify highs and lows price-wise

Elliott Wave Theory

Elliott Wave projections can help forecast price targets, using previous highs/lows to identify whether a rally is new and impulsive or represents a counter-trend move

Astro-Analysis

Using cycles of the sun, moon, and the planets to pinpoint highs, lows, and trends for stocks and indices, both from a transiting to transiting standpoint, or transits to natal charts for analysis

Seasonality Studies

Seasonality studies to identify times of above-average strength and/or weakness based on historical trends

Sentiment Analysis

Using equity put/call ratios for indices or stocks and/or commonly used sentiment polls to track investor sentiment.

Research and Coverage

Reports

Daily Technical Strategy

Every day, we deliver precise strategies derived from technical analysis, guiding you on potential market moves and insights to position accordingly.

Various Technical measures suggest a low should be close

As I am going to be traveling Thursday and Friday, there will be no Note or Video on either of those days.

Mark L. Newton, CMT - April 17, 2024

⚡️FlashInsights

In these rapid updates, our expert analysts provide insights on immediate market changes and technical patterns, ensuring you are always one step ahead in the fast-paced world of trading.

Mark L. Newton, CMT
Mark L. Newton, CMT
Head of Technical Strategy

Bank of America (BofA) recent April monthly report showed the Fund Manager Survey Allocation to Bonds dropped the most in over 20 years to a net -14% Underweight, which i find interesting from a contrarian perspective. This puts the BofA Fund Manager...

Apr 16
2:59 PM
Mark L. Newton, CMT
Mark L. Newton, CMT
Head of Technical Strategy

$ANET break of two-week support at $284 was a minor technical negative and has resulted in weakness down to levels near mid-March lows (~263) over the last couple trading days. This doesn't look to be a development that would lead to a...

Apr 16
1:03 PM

Weekly Roadmap

End your week with our "Weekly Roadmap", a summary that encapsulates our expert views and closing remarks for the week. This digest is crafted to bring all market happenings and our insights into one coherent context, ensuring you're well-informed and ready for the week ahead.

Stocks Sink After Israel-Iran Escalation

The S&P 500 has closed out its third consecutive down week, and there is no denying that investors had much to worry about this week. Stocks had already come under pressure last week with shrinking expectations for rate...

April 19, 2024

Media

Daily Technicals Video

Our webinars bring you face-to-face with our experts as they share the latest market trends and technical analysis, offering an opportunity to clarify your queries in real-time.

Various Technical measures suggest a low should be close

As I am going to be traveling Thursday and Friday, there will be no Note or Video on either of those days.

Mark L. Newton, CMT - April 17, 2024

Annual Outlook

At the start of each year, our annual outlook provides a comprehensive analysis of existing and potential U.S. policies, forecasting their impact on financial markets and offering actionable strategies for the year ahead.

Thu, Dec 14 11:00 AM ET

Mark Newton's 2024 Technical Strategy Outlook

– 2024 Technical Strategy Outlook – Key Sectors to Overweight & Potential Risks – EPS Outlook & S&P 500 Year-End Price Target

Tom Lee
Mark L. Newton, CMT

Head of Technical Strategy

Archives

Appearances Media Archives

Our researchers frequently appear across various media outlets, sharing their technical analysis and market insights. Our extensive archive ensures you have access to these valuable resources at your fingertips.

Video: Nasdaq to have the best first half ‘ever’: Mark Newton

9 months ago

CNBC Media Archives

We understand the importance of media in shaping market perceptions. Our archive of CNBC appearances provides a rich resource of insights shared by our researchers on this prestigious platform.

Video: We're in a bottoming process and a good time for risk assets, says Fundstrat's Mark Newton

5 months ago

Sample Reports

Technical Writeups of Super Granny-shot picks

Summary: I continue to see the US stock market as being attractive, technically speaking, and do not feel sufficient risk is there to warrant a selloff at this time. While price action has been a bit more subdued...

ANET
CDNS
CRM
META
NVDA
March 21, 2024
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Mark L. Newton, CMT
Head of Technical Strategy

February 2024 Technical Outlook

FOR FULL REPORT, PLEASE CLICK HERE. WHAT LESSONS WE LEARNED FROM JANUARY: * SPX, NASDAQ rally back to new all-time highs was certainly a bullish development despite some evidence of breadth waning.  Equal-weighted SPX, Russell 3k, nor Small...

February 5, 2024
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Mark L. Newton, CMT
Head of Technical Strategy

Latest Publications

Various Technical measures suggest a low should be close

As I am going to be traveling Thursday and Friday, there will be no Note or Video on either of those days.

April 17, 2024
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Mark L. Newton, CMT
Head of Technical Strategy

QQQ support violation postpones immediate rally

The recent selloff took a turn for the worse with the break of multi-week lows in QQQ, representing the worst two-day selloff since October 2023.  While I argued in last Friday’s note that this week should be important...

AMZN
GOOGL
ITA
META
MSFT
NVDA
SOX
April 15, 2024
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Mark L. Newton, CMT
Head of Technical Strategy

Financials nearing short-term support but selectivity remains key

This week’s selloff looks to be nearing important support heading into next week which should allow for some stabilization and a snapback rally into late April and the month of May.  I don’t make much of the recent...

AAPL
BRK
DB
GS
IAI
JPM
MS
PGR
RSP
RSPF
SAN
TRV
UBS
WFC
April 12, 2024
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Mark L. Newton, CMT
Head of Technical Strategy

Technology rally can help QQQ start to outperform SPY

In the very short-term, insufficient strength has occurred based on Thursday’s rally to suggest an imminent move back to new highs is upon us.  US Dollar and Yields remain trending higher and the Equal-weighted S&P 500 needs to...

AAPL
AVGO
MU
NVDA
RSP
April 11, 2024
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Mark L. Newton, CMT
Head of Technical Strategy

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