breakout in the # of SPX stocks above 200 day MA
The amount of stocks in the SPX above their 200 day moving average is around 5% We are at 2009 levels.
Dates in the future with the highest probability for price direction reversals
Good time to take profits as the S&P 500 has struggled to break past 75% resistance on the % of stocks in the index trading above their 200 day moving average.
This could be one of the greatest buying opportunities in a long time.
There is a bearish divergence setting up for the S&P500 whereby the advance is only happening with fewer than 70% of the component stocks in the Index above their own 200 day moving average. In the past when these divergences set up, it implied that profit taking was just around the corner. Given that the market just had a decent round of "profit taking", I...
This chart shows that the market rally has been built on a deteriorating internals since May 2013 (higher price vs. lower number of companies above 200 DMA), and this is concerning.
Internal strength remains weak despite the SPIKE higher in the SP500. As trend of stocks above 200-days Average remains diverging. I would like to see black line breaks above its descending trend line to negate this bearish signal. Until then, I am not a buyer, i remain unconvinced and strongly cautious on this bullish run. If this divergence persists for a...