20130920 Moving Average Breadth
Another volatile week for the markets as the FED came and went without making any changes. It is said that caught many off guard or leaning short, but I am not sure if it was that or many just waiting until it was over to put new money to work. The markets soared on the no taper and then spent the next two days giving much of it back. Add to that the fact that it was a quadruple witching week and you had to expect some wild action. However when the dust settled, the markets were still up on the week and $IWM $QQQ both had new high closes. $SPY missed it by $.20. The most interesting thing to me was how quickly every jumped on the “it’s over” bandwagon by mid-day Thursday and Friday. A small pullback wouldn’t surprise me, but there is no evidence yet that this is a major top. Oh yeah, and about that $NYAD divergence. The problem is that measurement is loaded with non equity holdings. So, I decided to build my own Cumulative Advanced/Decline line on my equity only universe we use here. Check it out here. No divergence that I see.
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)
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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