20130607 Moving Average Breadth

  • 0

20130607 Moving Average Breadth

The markets put in a bullish reversal this week.  There is a of talk about whether it was enough to reset things or not.  We barely made to 5% down before buyers started coming back in right where they should have.  It almost seems too easy (and it might be), but technically it makes sense.  Part of the reason it seems too easy is because of the noise that gets louder and louder with every percentage point we move down.  However, if you listen to your data and not CNBC you would have noticed the breadth figures were getting stretched to the downside if we are in fact still in a larger time frame uptrend.  Many including myself mentioned the McClellan Oscillator hitting extremes mid week; now let’s see how the moving average readings painted the picture.  In my book it looks like we got some decent reversals here too.  Technology held up exceptionally well while Industrials and Financials hit oversold and bounced on cue. .

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

6-8-2013 Total Universe with SPYNext I split the universe into 10 custom broad sector indexes

6-7-2013 Consumer Discretionary

Consumer Discretionary (325)

6-7-2013 Consumer Staples

Consumer Staples (91)

6-7-2013 Energy

Energy (132)

6-7-2013 Financials

Financials (316)

6-7-2013 Health Care

Health Care (199)

6-7-2013 Industrial

Industrials (252)
6-7-2013 Materials

Materials (148)

6-7-2013 Technology

Technology (338)

6-7-2013 Telecom

Telecom (24)

6-7-2013 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.

If you like what you see, follow me on StockTwits or Twitter.

(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

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.