Another week of volatility further weakening the breadth measures below. It still looks to be a short to intermediate move at this point, but the divergences and lack of amplitude is something to keep an eye on. There are only a few areas showing extremes so far so that leaves the door open for more correction, but we are at levels that we need to be watching closer for reversals when we are in a major uptrend like this one. The end of the year tends to be bullish, but it is not a lock. So, enjoy the holidays and your family and don’t press to hard either way for now.
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.