The average global market is only in a -8.0% drawdown, while the average S&P 500 stock is in a -19.6% drawdown.
Here’s the chart:
Let's break down what the chart shows:
The black line shows the average S&P 500 stock 52-week drawdown.
The blue line shows the average global market 52-week drawdown.
The Takeaway: I first pointed out a possible shift in leadership from the US to the rest of the world back in March. This was confirmed by the relative ratio of...
After 43 consecutive days, the S&P 500 has risen above the 50 level on the daily RSI.
Here’s the chart:
Let's break down what the chart shows:
The black line in the top panel is the S&P 500 index price.
The greenand redline in the middle panel represents the daily Relative Strength Index (RSI) for the S&P 500. When the line is green, it indicates that the daily RSI is above 50, while a red line signifies that the daily RSI is below 50.
The black line in the bottom panel shows how many consecutive days the daily RSI (14) has remained below the 50 level.
The Takeaway: The Relative Strength Index (RSI) is a momentum indicator that measures the speed and change of price movements. Recently, the daily RSI for the S&P 500 has climbed back above the 50 level after remaining below it for 43 consecutive days. This marks the longest period that the RSI has...
100% of the major indices I track are trading back above their key shorter-term moving averages.
Here’s the table:
Let's break down what the table shows:
The first column of the table lists several major indices. Each subsequent column represents a different moving average, ranging from the 5-day average to the 200-day average. A green highlight indicates that the index price is above the particular moving average, and a red highlight shows that the index price is below that moving average.
The Takeaway: Last week, I noted that the ongoing weakness in the stock market could result in further declines if the bulls didn't take action quickly. Fortunately, the Bulls did respond and made some progress, as there are now signs that the downtrends at the index level are beginning to reverse on a shorter-term basis.
The way I learnt it was that nothing good happens when the price is below the moving averages.
So, seeing these major indices rise back above their 5-day, 10-day, and 20-day moving averages is an...
