Encouraging action in one of my favorite breadth indicators, the percent of $SPX stocks above key moving averages. Both remained above the important 50% level, suggesting stocks broadly speaking are in a bullish phase. Food for thought! pic.twitter.com/goPEYwRZzp
— David Keller, CMT (@DKellerCMT) January 11, 2023
Today’s Chart of the Day was shared by David Keller (@DKellerCMT). The S&P 500 reclaimed its 50-day moving average yesterday, and it’s less than 1% below its 200-day moving average. David points out that the index is stronger internally than it is on the surface. As of today’s close, more than 76% of stocks within the S&P 500 are above their 50-day moving averages, and more than 65% of stocks are above their 200-day moving averages. David adds that readings above 50% are generally associated with bullish phases for the S&P 500.