20130920 Moving Average Breadth

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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

9-20-2013 Total Universe with SPY

Universe Composite Index

9-20-2013 Universe

Next I split the universe into 10 custom broad sector indexes

9-20-2013 Consumer Discretionary

Consumer Discretionary (325)

9-20-2013 Consumer Staples

Consumer Staples (91)

9-20-2013 Energy

Energy (132)

9-20-2013 Financials

Financials (316)

9-20-2013 Health Care

Health Care (199)

9-20-2013 Industrials

Industrials (252)

9-20-2013 Materials

Materials (148)

9-20-2013 Technology

Technology (338)

9-20-2013 Telecom

Telecom (24)

9-20-2013 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.