The S&P 500 fell nearly 7% from its all-time high at the beginning of August. Since then, the index has been chopping sideways as market participants anxiously try to figure out which direction this consolidation will resolve. In environments like this, it can be helpful to analyze market internals, like breadth, to gauge the overall […]
Chart of the Day – Wednesday, August 21st 2019
Today’s Chart of the Day was shared on Twitter by Neil Blalock (@NeilBlalock). It’s a chart of the percentage of stocks in the S&P 500 trading above their 200-day moving average. Neil points out that in the past two cyclical bear markets, (2015-2016 and Q4 2018) this indicator fell below 50% and stayed there until the market was […]
Chart of the Day – Wednesday, July 17th, 2019
Today’s Chart of the Day was shared in a research note from Frank Cappelleri of Instinet (@FrankCappelleri). It’s a chart showing the S&P 500 in the top panel, and the number of new highs within the index in the bottom panel. Over the past month or two, the S&P 500 has rallied to record highs. At […]
Should New Highs Equal Blue Skies?
The market is going this way, no its going that way. Maybe this way, and maybe the other direction because of this reason over here. This is likely the rhetoric you hear from pundits, social media, and maybe even your beloved financial representative. It’s confusing, I know. I’ve been there, jumped through and around the […]
A Gigantic Thrust in Breadth
This past weekend, Chris Ciovacco, owner of Ciovacco Capital, gave us his take on the strength we are seeing in the broad market. Looking at market breadth, and specifically the number of stocks trading above their respective 200-day moving average, have we seen “the mother of all breadth thrusts”? Chris seems to think so. First […]
