20130503 Moving Average Breadth
Finally got the 1600 breakout on the S&P 500 this week as the markets look to be ending the correction as I have been discussing now for a few weeks. My thoughts have been to look for oversold short term reading in a long term uptrend. If we are actually in a strong longer term uptrend (have repeated this for a reason which @chicagosean explains better here). Many believe we still are in need of a correction, I ask why? looking at these charts below we can clearly see that the total universe saw corrective breadth action while many sectors definitely saw corrective price and breadth action while the defensive names lead for a while. It just didn’t show up much in the $SPY $DIA or $QQQ. I discussed this late March in this Presidium Capital post.
A few weeks ago I suggested taking a closer look at those oversold sectors. This time it worked and these offensive sectors are taking the lead as we make new highs, which I consider a good sign. What do you think?
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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