20130201 MA Breadth

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20130201 MA Breadth

January came to an end this week closing an exceptionally strong month in both price and breadth.  A great start to the year.  We even got a glimpse into February that started out pretty well.  This underlying strength continues as the calls for a correction or reversal that started 1 week into the year continue to get louder.  I might argue we have been correcting along the way. It is just being done sector by sector and more on an intraday time frame.  Eventually the daily indicators will have to work off some of the overbought readings, but it doesn’t have to be with a big decline in price (although your risk plan should still be prepared for this). Instead, so far in this rally we have seen these play out in time which is another sign of strength and appetite for shares.

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

2-1-2013 Total Universe with SPYNext I split the universe into 10 custom broad sector indexes

2-1-2013 Consumer DiscretionaryConsumer Discretionary (325)

2-1-2013 Consumer Staples

Consumer Staples (91)

2-1-2013 Energy

Energy (132)

2-1-2013 Financials

Financials (316)

2-1-2013 Health Care

Health Care (199)

2-1-2013 Industrials

Industrials (252)

2-1-2013 Materials

Materials (148)

2-1-2013 Technology

Technology (338)

2-1-2013 Telecom

Telecom (24)

2-1-2013 Utilities

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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About Author


is a Chartered Market Technician (CMT) and Certified Financial Planner (CFPr) in Greensboro Georgia (Outside Atlanta). Founding partner of Barber Lackey Financial Group, LLC, a Registered Investment Advisor. However, this blog is not affiliated with BLFG and does not make recommendations to buy sell or hold any securities.