20130510 Moving Average Breadth

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May 13
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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

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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(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)

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20130510 Moving Average Breadth

May 13

0