The markets took this weeks news flow in stride and broke the mini-consolidations to the upside. The strength is there, don’t argue. I hear many out there arguing about divergences forming in the MA breadth. We will see the potential for that in today’s charts as well. That is not a signal in itself. Breadth divergences are worth noting, but don’t tell you anything about WHEN or WHERE the current leg will end. They are a yellow flag so you to pay closer attention, not a sell signal. Price patterns give sell signals.
I will continue to post both the $SPY and custom index for a few weeks, but will probably drop the $SPY version eventually.
First, the Total universe of 1898 companies posted over the $SPY
New Total Universe Custom Index
Next I split the universe into 10 custom broad sector indexes
Consumer Discretionary (325)
Consumer Staples (91)
Health Care (199)
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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