- Snapshot of the Market Internals for July 18, 2016
- S&P 500 index was trading above it's 100-period , which is a sign for positive price action
- Breadth Ratio ( UVOL to DVOL ) was less-than stellar with flowing into securities increasing over flowing into securities decreasing at a ratio of less than 2.0x for a majority of the day for the NYSE. Typically for strong days, you'd like to see a ratio of 2:1.
- Net line is above zero, illustrating that there are more advancing issues than declining issues on the NYSE. That being said, net advances are only at 800, which is below the threshold of 1000 securities. 1000 net advances would signal a strong .
Overall watching for the market to continue it's momentum tomorrow, but hoping for more strength from the market internals tomorrow. If the market shows signs of weakness and the S&P index starts to see price trade below it's 100 period , then watch the market internals to see if you should search for shorting opportunities.
OVERALL SUMMARY: Look for long opportunities ONLY to stay with the majority of the market's movement.