Market Breadth: Percentage of Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined
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37.14% (+8.72% 1wk)
Status: Tentative Positive Environment
The US Total Percentage of Stocks above their 50 Day, 150 Day & 200 Day Moving Averages (shown above) increased by +8.72% this week.
Therefore, the overall combined average is at 37.14% in the US market (NYSE and Nasdaq markets combined) above their short, medium and long term moving averages.
The combined average continued to rebound this week from the recent extremes, and managed to push through the key 30% with a strong surge at the end of the week particularly. So its now +14.74% above its shorter-term 20 day MA, and this week crossed above its 50 day MA (signal line) by +6.85%. But has yet to breakout above the March highs, plus the December and January lows, which are all in close proximity in the 38% to 40% range. So while the status has changed from Neutral to a Tentative Positive Environment. The near-term possible overhead resistance from these prior swing lows and highs, plus the distance that it's travelled in a short space of time, are potential headwinds that need be overcome before the tentative status can be dropped.
But while extended in the short-term. A strong move through the key 30% level after spending a period in the lower zone, is used as a potential longer-term signal for this market breadth tool. So a pullback towards its 50 day MA that holds (see Nov 2023 for example), would be the ideal scenario for the bulls.
The Point and Figure (P&F) chart (shown above) continued higher a column of Xs. So the P&F strategy remains on Offense (as it is in a column of Xs), and P&F Bull Alert status with a Low Pole Reversal, as its recovered more than half of the prior column of Os.
It's very close to a potential status change to Bull Confirmed – which would need to close above the 38% level. Whereas for a reversal back to Os and Bear Confirmed, it would need to close below the 30% level.
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.