20130503 Moving Average Breadth

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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

5-3-2013 Total Universe with SPYNext I split the universe into 10 custom broad sector indexes

5-3-2013 Consumer Discretionary

Consumer Discretionary (325)

5-3-2013 Consumer Staples

Consumer Staples (91)

5-3-2013 Energy

Energy (132)

5-3-2013 Financials

Financials (316)

5-3-2013 Health Care

Health Care (199)

5-3-2013 Industrials

Industrials (252)

5-3-2013 Materials

Materials (148)

5-3-2013 Technology

Technology (338)

5-3-2013 Telecom

Telecom (24)

5-3-2013 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.