Market Breadth Surges Toward Overbought As Indices Get Toppy – The Market Breadth

Market Breadth Surges Toward Overbought As Indices Get Toppy

Stock Market Commentary Last week further emphasized the continuation of notable divergence from Q2 to Q3. This time, soft inflation data caused a surge in rate cut anticipation that in turn drove a significant rotation away from big cap growth and tech stocks and toward small caps and a whole host of other rate sensitive … Read more

Market Breadth Waned Despite Stock Market All-Time Highs – The Market Breadth

Market Breadth Waned Despite Stock Market All-Time Highs (Credit: waning crescent moon by circulating: https://www.flickr.com/photos/26835318@N00/2536319961)

Stock Market Commentary The week’s trading was punctuated by a single day with an all-time high on the S&P 500 and the NASDAQ in the wake of strong readings on the May S&P Global US Services PMI and the May ISM Non-Manufacturing Index. Unfortunately, that price milestone failed to change the contour of market breath … Read more

Can A Bullish Divergence Create A Bottom for Stocks? – The Market Breadth

Can A Bullish Divergence Create A Bottom for Stocks – The Market Breadth (Credit: UnknownNet Photography on Flickr - https://www.flickr.com/photos/110548908@N06/24936496357)

Stock Market Commentary Last week was an intense week of trading. The ever-escalating conflict in the Middle East disturbed markets. However, the initial negative reaction in futures market was mostly erased by the time of the market open on Thursday. The indices even managed to gain ground before getting faded. Thus, the market still fundamentally … Read more

Above the 40 (April 13, 2018) – The Bears Engulf An Otherwise Uplifting Week for the Stock Market

AT40 = 45.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 44.0% of stocks are trading above their respective 200DMAs VIX = 17.4 Short-term Trading Call: neutral Commentary The S&P 500 (SPY) gained 2.0% for the week. Yet the week felt like a loser given the way it ended. The … Read more

Above the 40 (February 2, 2018) – Janet Yellen Exits As Oversold Market Conditions Loom

AT40 = 38.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 54.7% of stocks are trading above their respective 200DMAs VIX = 17.3 (28.5% increase!) Short-term Trading Call: bullish Commentary “We cannot tolerate pervasive and persistent misconduct at any bank and the consumers harmed by Wells Fargo expect that robust … Read more

Above the 40 (April 13, 2017) – The S&P 500 Suffers A Convincing End to Bullish Divergence

AT40 = 38.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 57.2% of stocks are trading above their respective 200DMAs VIX = 16.0 (volatility index) Short-term Trading Call: cautiously bullish (notable caveats explained below) Commentary The 50-day moving average (DMA) is no longer golden. It figures that on a day … Read more

T2108 Update (October 15, 2014) – Buyers FINALLY Draw A Line in the Sand

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more