20130510 Moving Average Breadth

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20130510 Moving Average Breadth

I get perplexed when I hear people talking about the breadth being too good.  That is where we are this week.  Strong breadth is a sign of a strong market, not one that is topping.  Will it stay this high? No, don’t be silly; but it can (and usually does) deteriorate for a while before we get a real top.  So if anything the strength in breadth might be a sign to lock some in or tighten stops int he short term, but anything beyond that and the strong breadth is bullish.

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

5-11-2013 Total Universe with SPY

Next I split the universe into 10 custom broad sector indexes

5-10-2013 Consumer Discretionary

Consumer Discretionary (325)

5-10-2013 Consumer Staples

Consumer Staples (91)

5-10-2013 Energy

Energy (132)

5-10-2013 Financials

Financials (316)

5-10-2013 Health Care

Health Care (199)

5-10-2013 Industrials

Industrials (252)

5-10-2013 Materials

Materials (148)

5-10-2013 Technology

Technology (338)

5-10-2013 Telecom

Telecom (24)

5-10-2013 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.