20130802 Moving Average Breadth

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20130802 Moving Average Breadth

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

8-2-2013 Total Universe with SPYNew Total Universe Custom Index

8-2-2013 Total UniverseNext I split the universe into 10 custom broad sector indexes

8-2-2013 Consumer DiscretionaryConsumer Discretionary (325)

8-2-2013 Consumer Staples

Consumer Staples (91)

8-2-2013 Energy

Energy (132)

8-2-2013 Financials

Financials (316)

8-2-2013 Health Care

Health Care (199)

8-2-2013 Industrials

Industrials (252)

8-2-2013 Materials

Materials (148)

8-2-2013 Technology

Technology (338)

8-2-2013 Telecom

Telecom (24)

8-2-2013 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.