Info!! Indicator Review For May 19Th

Last week's indicator review highlighted the uneven sector functioning during the market's recent rebound from March lows. By Wednesday, I noted that the number of stocks making fresh annual highs had expanded, a sign of growing breadth to the rally. This forcefulness owed much to the midcap stocks (top nautical chart higher upward from a growing per centum of stocks are closing higher upward their 200-day moving averages; amid SPX issues, that per centum is right away 58%, upward from 15% at the March lows. On a shorter-term basis, 77% of S&P 500 large cap; 76% of S&P 400 mid cap; in addition to 64% of S&P 600 pocket-sized cap stocks are trading higher upward their 50-day moving averages, equally good indicating adept participation inwards the rally.

To move sure, sector variation is notwithstanding present, in addition to I volition review this inwards an upcoming post. Financial, airline, in addition to homebuilding stocks stay weak; unloose energy in addition to applied scientific discipline issues stay strong. Because of this uneven sector performance, I would non telephone outcry upward the advance-decline trouble for NYSE mutual stocks strong, but it did accomplish a post-March high this by week.

In general, these measures of forcefulness tend to pinnacle ahead of price, which suggests to me that--though nosotros may move due for simply about correction--we choose non seen the final of the rally next the double-bottom inwards January/March. I conk on to harbor doubts that this rally volition choose us meaning novel toll highs for the major averages. Rather, I encounter it equally a late, selective continuation of the bull bicycle that began inwards August, 2006. Some sectors (financials) choose probable seen their bull peaks; others (energy) are notwithstanding making them. If that conjecture is correct, the adept tidings is that nosotros should encounter farther toll forcefulness inwards the major averages into the summer. The bad tidings is that a to a greater extent than meaning acquit may prevarication beyond.
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