I usually use this chart to see the health of the stock market. The INDEX:MMFI is a good indicator to see if an uptrend is backed by the mayority of the stocks that play the market and not only the big caps leaders. This little divergence between the price action and its RSI shows that this indicator may go higher. Although, is a short term time frame so I'm...
Right now 60% of stocks in the market are above their 50 day moving averages. Is it a good time to buy? Take a look back at last year when less than 10% of the market was above the 50 day MA. There's definitely more selling ahead.
I often look at INDEX:MMFI to keep an eye to the momentum of the market in general. For me its like another Advance Decline Line of the TVC:SPX but with a little better information. Now I can see that for the past 6 years, every time that percentage hits more than 84%, the TVC:SPX is in the beginning of really good bull run, but normally is just after a...
Combination chart of several different Breadth metrics.
Multiple timeframes are used to smooth out false-signals.
$MMTH - % Above 200 Day MA
$MMOF - % Above 150 Day MA
$MMOH - % Above 100 Day MA
$MMFI - % Above 50 Day MA
The market breadth upswing is just getting started. Expect volatility along the way, but know that you are on the right side of the weekly trend. Long trades will likely play out better than short ones, going forward for the next month or two.
Also have a look at the daily MMFI chart for a closer look at the day-to-day.
God bless you, and may you be richly...
This chart is looking at the % of US Stocks Above their 50-Day Moving Average (ticker = MMFI), which is an excellent way to gauge market breadth and buy/sell entry areas. We have entered the buy zone on the weekly chart and the buy confirmation will be when the line on the price chart moves upward from this buy zone. This is not a good time to be going short, as...