Market Breadth: Percentage of Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined
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15.02% (-15.30% 1wk)
Status: Difficult Environment
The US Total Percentage of Stocks above their 50 Day, 150 Day & 200 Day Moving Averages (shown above) decreased by -15.30% this week.
Therefore, the overall combined average is at 15.02% in the US market (NYSE and Nasdaq markets combined) above their short, medium and long term moving averages.
The combined average continued its trend lower, and accelerated to the downside this week. Moving deeply into the lower zone at -16.60% below its 20 day MA, and -25.69% below its 50 day MA (signal line), which is the most stretched it's been from its 50 day MA since the 2022 Stage 4 market. Hence, in the short-term its potentially approaching a swing low. But there may be further wreckage first, and then any bounce, however strong, may be short lived. As the technical damage done to stocks this week could take a long time to recover from, unless there's extreme intervention in the markets. But that seems unlikely at the moment. So a major Stage 4 decline, with its powerful counter-trend rallies, seems to be the environment that we are in for the near-term. So extreme caution remains prudent.
The Point and Figure (P&F) chart (shown above) reversed immediately on Monday to a column of Os, and so the P&F strategy changed back to Defense (as it is in a column of Os), and P&F Bear Confirmed status, and continued strongly lower into the end of the week. Dropping deep into the lower zone, which hasn't happened since 2022. So for investors, its time to start building a list of ideas, as visits to the lower zone are rare (members – see the long-term NYSE and Nasdaq MA Breadth charts at the end of the post for the previous times in the last 20 years or so that it reached these levels).
See the Bullish Percent article for more information on the P&F statuses.
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Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.