20130328 Moving Average Breadth
Mr Market had no intentions of ending the quarter with anything but a run at the highs. He won and many bears lost this week. The tepid nature of the markets had many betting it was time for the pullback. Another week comes to a close without those prophecies coming to pass. There are many sectors making new highs with the breadth figures lagging at this point. it is these kinds of moves that form the divergences that we will be watching for. But also realize what is happening during those divergences. The larger Cap names are taking over and showing more strength than the smaller names. That is a sign of a maturing market, but as we saw in the 90’s it can go on for quite a while.
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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