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
Universe Composite Index
Next I split the universe into 10 custom broad sector indexes
Consumer Discretionary (325)
Consumer Staples (91)
Energy (132)
Financials (316)
Health Care (199)
Industrials (252)
Materials (148)
Technology (338)
Telecom (24)
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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