Last week's indicator review flora that nosotros remained inwards a bullish trending mode, but that yellowish signals were get-go to flash, indicating potential divergences.
This week, nosotros encounter a continued uptrend amid the S&P 500 sectors that I rails alongside my proprietary stair out of Technical Strength. Indeed, we're seeing detail relative forcefulness amid Consumer Discretionary too Energy shares, every bit good every bit Financial stocks. No sectors are inwards either neutral or bearish tendency modes, telling us that marketplace position forcefulness has been broad.
That breadth of marketplace position forcefulness is every bit good evident inwards the Advance-Decline business specific to NYSE mutual stocks (middle chart), a real useful indicator posted daily past times Decision Point. Note that we've had many to a greater extent than days alongside advancing stocks leading declining ones over the past times month; when decliners bring led, they bring non shown the form of plurality that nosotros saw during the previous marketplace position selloff. Quite simply, we're non seeing meaning selling pressure level inwards the market, which has every bit good been evident inwards the positive Cumulative NYSE TICK balance, every bit noted past times Market Tells.
Finally, nosotros encounter that the per centum of stocks trading inwards a higher house their 50-day moving averages (bottom chart) every bit posted past times Barchart, remains quite high too real close its superlative since the Feb lows. This tells us that intermediate-term momentum remains strong, fifty-fifty every bit some shorter-term momentum measures exhibit some divergences. (The per centum of stocks trading inwards a higher house their 20-day moving averages is at a bullish 71%, but downward from the 80+% levels registered inwards March; novel 20-day highs exceeded 1500 on Friday, downward from over 3000 inwards March).
In all, nosotros rest inwards a bull mode. Some caution lights roughly short-term momentum too forcefulness remain, but nosotros are non every bit withal seeing the form of technical deterioration that ordinarily accompanies a marketplace position nearly to tank. As always, I volition update indicators daily via Twitter earlier the marketplace position open.
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