20130823 Moving Average Breadth

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20130823 Moving Average Breadth

This week tested the bulls again waffling into the Fed meeting and selling off hard after it.  Looked bad, but as so often happens the real message comes from the follow through or lack of it in this case.  The markets were already getting oversold in an uptrend (as mentioned here last week), so shorting the Wednesday breakdown didn’t seem like the play.  Thursday the markets reversed back higher and post a gain for the week.  This may just be a bounce, or it could be the end of the correction. Don’t rule either out as these markets have been super resilient this year and these breadth charts look like they could be ready for another run.

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

8-23-2013 SPY with Total UniverseUniverse Composite Index

8-23-2013 Universe

Next I split the universe into 10 custom broad sector indexes

8-23-2013 Consumer Discretionary

Consumer Discretionary (325)

8-23-2013 Consumer Staples

Consumer Staples (91)

8-23-2013 Energy

Energy (132)

 8-23-2013 Financials

Financials (316)

8-23-2013 Health Care

Health Care (199)

8-23-2013 Industrials

Industrials (252)

8-23-2013 Materials

Materials (148)

8-23-2013 Technology

 Technology (338)

8-23-2013 Telecom

 Telecom (24)

8-23-2013 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.