Things were plugging along fine until Thursday….well at least that is what it looked like in the Major indexes (maybe with the exception of $IWM); then Thursday came and the bears finally had a day to be proud of. Of course, come Friday all is well with the world again as we have seen so many times over the last year. Sure one of these will actually be the top, but I expect it to show up in the breadth work first, not after the fact. The deterioration we noted last week and even the add on this week still looks very corrective to me. At major tops the percent above the 200sma usually has already started deteriorating and so far this time we are not seeing that.
Don’t forget to check out the new weekly feature Probing The Universe
I have decided to leave the $SPY chart on just to give a comparison to the universe.
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.