[isatrader]

Below is the data table for the Percent of Stocks Above 150 Day Moving Average in each sector which I've ordered by relative strength, with the highest to the lowest percentage in each sector. Also attached is the visual diagram of the 9 sectors and the NYSE Percentage of Stocks above their 150 day Moving Averages line chart.

It's been six weeks since I last did the sector breadth and as you can see there's been a notable deterioration across the board since then, with the majority of sectors in the 40% zone (43.60% is the average of all the sectors), and so the US is clearly in Stage 3 under the surface, but the large cap indexes are still near to their highs due to the large caps out performance. Whether this turns into a full Stage 4 decline is unknown, but the US market is certainly at a critical point at the moment and so is going to be an interesting start to October.

[slowdown]

Attached is the updated UK and German equity index charts.

German DAX Index

Germany EWG this week, following poor Econ numbers and fall in US stockmarket, now into stage 4 http://scharts.co/1qBKljO
The question is whether we should have entered nearer 30 or 29, rather than now at 28, especially into end of quarter. R/R not tempting now.

I would prefer just below 29.25 but wait till the DAX enters stage 4.

[isatrader]

With the continued heavy number of breakdowns yesterday, I thought it would be useful to look at a longer term chart of the US markets to compare the breadth to previous periods when it's reached the lower zones in all of the short, medium and longer term measures. The Percentage of stocks above their 150 day MAs at the bottom of the charts is particularly important to keep an eye on.

       

           

[JimStudent]

John Murphy over at stockchart.com says there is a potential head and shoulders pattern on the Russel signaling a bearish top.

"SMALL CAP HEAD AND SHOULDERS TOP?... A debate is going on within the technical community as to whether or not the Russell 2000 Small Cap Index is in danger of completing a "head and shoulders top". A case can certainly made for it, although it would be an unusual one. The daily bars in Chart 1 show two smaller peaks (shoulders) formed during January and late August. In between those two lower "shoulders" a "double top" was formed between March and early July. So while it might not quality as a textbook "H&S" top, the bearish warning is still valid. At the moment, the Russell 2000 iShares (IWM) are testing a "neckline" drawn under its February/May lows (red line). A downside violation would complete the topping pattern that's been forming for months. The negative volume pattern confirms that bearish analysis."

What do you think?

[isatrader]

Attached is the updated US equity index charts.

US Stock Indexes

       

           

[isatrader]

Attached is the updated UK and German equity index charts.

UK Stock Indexes

           


German DAX Index

   

[isatrader]

Attached is the updated major commodities charts, Gold (GC), Copper (HG), West Texas Intermediate Crude (CL) and the Dollar Index (DX).

[isatrader]

Attached is the updated US 10 & 30 Year Treasuries charts.