Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical and Quantitative Research

Cautious Outlook; Get Defensive and Sell Rallies; Upgrading Energy; Downgrading Technology

Odds of a Prolonged Downturn Are Rising; We Are Cautious; Get Defensive

S&P 500 and Nasdaq 100 Testing Prior 2022 Highs; Still Bearish and Cautious

S&P 500, NYSE Comp, QQQ Find Initial Support; Strong Buying Demand Suggests Local Low at Minimum

Near-Term Downside Likely Following False Breakouts; Targeting 5770-5850; Long-Term Still Bullish

S&P 500 and Nasdaq 100 Testing Initial Support; Russell and Nasdaq With Bullish Breadth Divergences

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical Analysis

Microstrategy Inc Cl A / Technical Analysis

<ul>
<li>In our 2/25/25 Compass, we discussed our expectation for near-term downside. Also said one or two 8-10% pullbacks in a given year on the SPX is common</li>
<li>And said to not be surprised if there is a test of the bottom of the range at either 5770-5850 or 5600-5670, where we would be buyers</li>
<li>The SPX had a -10.3% peak-to-trough decline, with support showing up at 5500; close enough to our 10% pullback and 5600 level. This has been a stellar buy area</li>
</ul>


In our 2/25/25 Compass, we discussed our expectation for near-term downside. Also said one or two 8-10% pullbacks in a given year on the SPX is common
And said to not be surprised if there is a test of the bottom of the range at either 5770-5850 or 5600-5670, where we would be buyers
The SPX had a -10.3% peak-to-trough decline, with support showing up at 5500; close enough to our 10% pullback and 5600 level. This has been a stellar buy area


Dow Jones Industrial Average (INDU INDEX)

Communication Services Select Sector SPDR Fund (XLC US)

Communication Services Select Sector SPDR Fund

Major Low Likely in Place on S&P 500; Bullish Outlook Intact if Above 5500-5600