In this video, I cover the SP 500 stocks over their 50-day moving average. We are never had previous highs and have potentially formed a double-top higher high after some climatic activity. If this is a rollover a measured move of the first leg brings us into 3% territory.
With rate hikes upon us, it could change the characteristic of this potential downward...
Indices have been hitting all time highs but the number of stocks trading above their 50MA has fallen. I believe we may finally be looking at a correction. As we get into the next quarter earnings season, it will be whether stocks can continue to exceed expectations and keep the market excited about what's ahead.
The AI hype may fade quickly and in a deadly way....
The % of stocks above their 50-day MAs is signaling that an upward rally is near.
Not only it already went below 10% but now is showing a bullish divergence with the $SPX.
A good confirmation for a changing mid-term trend, not only would be that the CBOE:SPX gets back above its 50-day MA but also that this index gets above 30%.
You can argue that there are several stocks that are working.
I profited on two stocks this month but weren't big profits.
Some say that is still a bear market, others that is already a bull market as the NASDAQ:IXIC already rallied 20% from its low.
I will just say that is an unhealthy market. This -8% drop in the CBOE:SPX wasn't a normal correction.
Just...
Looking at the latest S&P 500 SPX (SPY ES1!) "Breadth" data , including Stocks Above 50-Day Moving Average (S5FI) & Stocks Above 200-Day Moving Average" (S5TH) — this is yet another indicator that we have been tracking since the start of the market downturn (correction/bear market) in late 21' / early 22' as it has helped to signal buy/sell signals.
Here's what...
Every prior time this indicator has hit 91%+, the market began a new descent.
JPOW's comments signaled a dovish Fed with a pivot incoming.
Will the 50DMA bear sign still hold that trend as a signal to sell?
Perhaps not, zooming out to prior instances of the stocks over the 50DMA we can see it never signaled sell-offs like in this current bear market. The last...
I know there are a million reasons to be bearish, and this is just an idea!!! remember that lol
The main chart is stock below there 50 day moving average After today I am sure its about 2%. The SP has been in a down trend ever since Powell talked on the 13th I think it was.
The SP is also coming up on the (weekly) 200 day moving average which is 358.19. I know...
The percentage of stocks of the SP:SPX got above 80% last week. For the last 4 years, this has been a very good signal for excess and a correction is due.
Use this to find strength. The stocks that manage to stay above its 50-day MA may be the ones that lead the next move. At the moment oil, gas and some solar stocks dominate my watchlist. And I am a Bottom-Up...
Are you looking for an edge in swing trading/long term investing? I highly suggest using market breadth!
Highlighted with vertical lines on the chart and yellow and red circles in the breadth chart (% of S&P above their 50 day MA) are all instances when breadth dropped to 50 or 30% AFTER rising from 10 to 91%. As you can see from the chart in all historical cases...
top MADX - number of Highs minus Lows for last 52 weeks
S5FI - number of S&P 500 stocks above 50 days Moving average
S5TH - number of S&P 500 stocks above 200 days Moving average
bottom - SPX index
I expect some continuation from this recent rally. The percentage of SPX stocks trading above their 50-day MA is now bouncing from being too far below the lower band of the channel I have defined.
Annotated on the chart are the previous times it significantly breached the lower band.
MACD histogram turning green with MACD line curling up for a cross. RSI...
Thus far in 2022, the overall S&P 500 index has struggled. In weighing the collective evidence of stock market health, we may seek breadth measures or tools to see how the component stocks to this index are individually performing as well. Here, the percentage of $SPY stocks trading above their 50 day moving average (plotted weekly) is shown to fluctuate widely....
Last Friday’s price action certainly ignited calls of a ‘bottom’ in this market rout that started in earnest in Nov 2021. But as they say, ‘not so fast’!
Gina Martin Adams, Chief Equity Strategist for Bloomberg Intelligence noted in a recent tweet that “all of the major bottoms since 2009 occurred with less than 5% of the S&P 500 trading above their 50-day moving...
