Looks like last week’s break to the upside was a little premature. Still feels like consolidation as the bears can’t seem to take charge. The breadth reading are still softening, but mostly on the 20sma reads. The 50sma and 200sma reads still look very solid to me. All this suggests we could see more sideways action that might dip a little deeper, but if so those 20sma readings are likely to get oversold quickly. If this happens how well the other two readings hold up will be the key.
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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