Market Breadth: Percentage of Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined
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20.59% (+3.77% 1wk)
Status: Difficult Environment
The US Total Percentage of Stocks above their 50 Day, 150 Day & 200 Day Moving Averages (shown above) increased by +3.77% this week.
Therefore, the overall combined average is at 20.59% in the US market (NYSE and Nasdaq markets combined) above their short, medium and long term moving averages.
The combined average rebounded this week from the recent extremes, but is still in the lower zone below the moving averages. But has made an improvement towards its shorter-term 20 day MA at just -3.90% below it now. But remains a long way below its 50 day MA (signal line) at -14.09%.
So it remains on Difficult Environment status to start the new week once more. So caution remains prudent. But as I mentioned last week, the moving average breadth is used as a contrarian breadth measure at the extremes. So reversals that move strongly out of the lower zone (0% to 30% range), are used as a potential longer-term term positive signal. With rebounds from the lower extremes and still within the lower zone, are used as tentative short-term signals where progressive exposure might be utilised.
The Point and Figure (P&F) chart (shown above) reversed on Monday to a column of Xs and added 4 Xs in total during the week. So the P&F strategy changed to Offense (as it is in a column of Xs), and a tentative P&F Bull Alert status. As for a typical Bull Alert it needs to recover the key 30% level. So, as its rebounding from a very low level, it gets a tentative for now. As its only a fledgling move thus far.
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.