20130913 Moving Average Breadth
The major indexes had another good week and the further it got the more reasons I heard the end is near. Strangely that came along with better breadth readings and some decent breakouts that held. It certainly wasn’t a good week for every stock, but looking at these charts we did see continued improvement. It looks more like the markets are prepping for another breakout more than a collapse. Well, actually the $QQQ is already there. A quick look at the $SPY and my custom universe shows we are consolidating in a tight flag just below the highs. It can break either way, but the pattern favors an upward one. That said, even if we do pullback more, the markets continue to be very resilient and should be respected.
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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