20121207 Moving Average Breadth
The broader markets performed decent this week considering the circumstances. We needed to digest the run, the question was how would we do it? Sideways or down? Constructive or not? Well if you look at price alone, the $IWM and $SPY look pretty good as they move more sideways. Then there is the $QQQ trying to pull things down. So price is mixed. Then we look at breadth measures which continued to improve this week during the digestion which is what you want to see.
First the Total universe of 1960 companies posted over the $SPY
Next I split the universe into 10 broad sectors
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Materials
Technology
Telecom
Utilities
These are custom indexes so you cannot invest directly in them, but there are plenty of ETFs available for each sector. For me personally this is another form of relative strength, just with a broader lens .
Good Luck! It is there for you to make.
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