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The major indexes, i.e. the S&P 500, Nasdaq, Russell 2000 etc, all continued to pullback today with a weak failed attempt to regain the 21 day EMA and then poor close near the bottom of the daily candle. So all had a second daily close below the 21 day EMA and the short-term market breadth indicators, such as the S&P 500 percentage of stocks above their 20 day EMA (which can be seen in the top chart), continued lower also and closed at 38.60%.

Renewable Energy Equipment was big feature in tonights watchlist, as multiple stocks in this leading group are pulling back towards short-term MAs, and so could be near to actionable areas if the market doesn't fall apart that is...

This weeks Stage Analysis Members video begins with a discussion of a more complex Stage 1 base structure that can develop when a stock has a very early Stage 2 breakout attempt from a small base that then quickly fails and broadens out into much larger Stage 1 base structure.

There were 24 stocks for the US stocks watchlist today – STRA, CF, TH,UNG + 20 more...

The IBD Industry Groups Bell Curve – Bullish Percent average distribution declining by -0.11% since the previous week, with 3 groups dropping out of the Stage 2 zone and one group dropping back into the Stage 4 zone. But the overall average remains slightly above the mid point of the bell curve, which is the Stage 1 zone when rising from the lower Stage 4 zone.

Custom Percentage of Stocks Above Their 50 Day, 150 Day & 200 Day Moving Averages Combined Market Breadth Charts for the Overall US Market, NYSE and Nasdaq for Market Timing and Strategy.

The purpose of the Relative Strength (RS) tables is to track the short, medium and long term RS changes of the individual groups to find the new leadership earlier than the crowd...

Exploration & Production was in focus today, with multiple stocks from the group showing up in the scans, but of varying quality. However, the IBD version of the group made a new double top breakout on its P&F chart and so moves back to P&F Bull Confirmed status for the group...

This weeks midweek video starts with a feature on the IBD Industry Group Bullish Percent Index, which I highlighted in the blog post on Tuesday. So I wanted to do a deeper discussion on the comparative periods from the chart to show the type of market behaviour that came next during each of the previous periods.

With the S&P 500 testing the 200 day MA today and Dow Industrials closing above it, the IBD Industry Group Bullish Percent Index has moved above the 60% level, which is the level that I use to determine the Stage 2 zone. 60%+ is considered in the Stage 2 zone. So although the majority of the major market indexes are only in Stage 1, the Industry Group Bullish Percent breadth data is moving into a tentative Stage 2 zone position...