The bears took control the last week of summer while many were on vacation. The markets just didn’t have any catalyst to move higher. I continue to watch the breadth structure as it gets oversold on the short term measures, deteriorates on the intermediate term, but is holding strong long term. This still suggest correction, but doesn’t tell us how far or long it goes. Defenses should be up right now, but also a keen eye on opportunities as it just hasn’t paid to bet on a big move lower this year and sentiment is getting bearish quick. That said, there is still room to back fill in the larger trend before too much worry. We should get a few clues next week as Wall Street starts coming back from vacation.
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)
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.