20130419 Moving Average Breadth

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20130419 Moving Average Breadth

We finally see the some damage in the Major indexes this week, The $SPY and $DIA held up best.  The more the $IWM lags the more likely we will continue to see weakness in the breadth figures.  That said we are starting to see many sectors getting to oversold levels where they tend to reverse if we are still in an uptrend. Some still have room to go lower, but we are getting close enough to start looking closer here.  Look left on most of the charts and you will see when the 20sma and 50sma move below the lower horizontal lines (line value based on the specific moving average) while the 200sma remains in the upper half it can lead to pretty strong moves.  Don’t forget we have been talking for a while about the sectors correcting without the indexes.  Now that the indexes have started to rollover a bit and everyone is calling for Armageddon,  it will be interesting to see if the sectors are telling us we are closer to the end than the beginning. Time will tell.

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

4-19-2013 Total Universe with SPYNext I split the universe into 10 custom broad sector indexes

4-19-2013 Consumer DiscretionaryConsumer Discretionary (325)

4-19-2013 Consumer Staples

Consumer Staples (91)

4-19-2013 Energy

Energy (132)

4-19-2013 Financials

Financials (316)

4-19-2013 Health Care

Health Care (199)

4-19-2013 Industrials

Industrials (252)

4-19-2013 Materials

Materials (148)

4-19-2013 Technology

Technology (338)

4-19-2013 Telecom

Telecom (24)

4-19-2013 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.