Info!! 3 Views Of Marketplace Weakness, Exactly Is The Marketplace Getting Weaker?

The recent shipping highlighted weakness that had shown upward inwards the wide stock market.  Above nosotros encounter 3 perspectives on that weakness.  The run yesteryear nautical chart tracks a cumulative full of the proportion of NYSE stocks trading to a higher house vs. below their daily volume-weighted average prices.  The stance behind this mensurate is that, inwards a strong/weak market, nosotros should encounter the neat preponderance of shares trading above/below their daily moving averages.  When stocks made their recent highs, nosotros saw fewer shares participating inwards forcefulness vis a vis their VWAPs.

The middle nautical chart follows buying describe per unit of measurement area vs. selling pressure, where nil represents a residuum betwixt the two.  Buying describe per unit of measurement area is a business office of moment-to-moment upticks amidst NYSE stocks; selling describe per unit of measurement area reflects downticks.  In a strong/weak market, nosotros should encounter the bulk of stocks upticking/downticking.  Note how the residuum betwixt buying together with selling describe per unit of measurement area has been steadily waning inwards recent days.

The bottom nautical chart tracks the proportion of NYSE stocks closing above/below their upper/lower Bollinger Bands.  Note hither also how recent sessions convey provided us amongst a negative Bollinger balance.  

What I expect for are mutual themes amidst multiple indicators.  The big enquiry I'm addressing is whether the stock marketplace position is:  a) rising together with getting stronger; b) rising together with getting weaker; c) inwards a balanced range; d) falling together with getting weaker; or e) falling together with getting stronger.  As marketplace position cycles evolve, nosotros shift from a) to b) to c) to d) to e).  It is the preponderance of evidence, non whatever unmarried marketplace position mensurate or nautical chart pattern, that provides a meaningful response to where we're at inwards a marketplace position cycle.   

Right instantly I'm gauging marketplace position forcefulness vs. weakness for the electrical flow marketplace position versus where nosotros stood at the cease of Dec 1st.  So far, we're seeing to a greater extent than novel highs together with fewer novel lows than at the commencement of the month, precisely also to a greater extent than stocks closing below their lower bands.  Raw materials together with liberate energy shares are downwards over 3% on the week; healthcare together with fiscal shares are upward over 1%.  It is non clear to me that what we're seeing together with thus far is a wide based decline, equally opposed to a correction inwards a broader topping process.  Trending markets mostly cutting across sectors.  When sectors are doing really dissimilar things, that smacks to a greater extent than of rotation than outright trend--and that keeps me nimble.

Further Reading:  How Markets Looked Before the Oct Swoon
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