20130111 Moving Average Breadth

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Jan 13
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20130111 Moving Average Breadth

Markets did a great job digesting last weeks surge closing near the highs for the. Breadth also remained strong and even strengthening more in some cases. All in all, it was another good week. One point I want to make clear is that I do not see high breadth readings as a reason to look for a reversal. strong breadth is a good sign and supports the trend. When you start seeing more divergences is when I would start looking for more sustained weakness.

First the Total universe of 1898 companies posted over the $SPY

Next I split the universe into 10 custom broad sector indexes

Consumer Discretionary (325)

Consumer Staples (91)

Energy (132)

Financials (316)

Health Care (199)

Industrials (252)

Materials (148)

Technology (338)

Telecom (24)

Utilities (73)

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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(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)

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20130111 Moving Average Breadth

Jan 13

0