Market Breadth: Percentage of Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined
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45.68% (-13.67% 1wk)
Status: Difficult Environment
The US Total Percentage of Stocks above their 50 Day, 150 Day & 200 Day Moving Averages (shown above) decreased by -13.67% this week.
Therefore, the overall combined average is at 45.68% in the US market (NYSE and Nasdaq markets combined) above their short, medium and long term moving averages.
The combined average had a consistent decline throughout the week, dropping sharply back through its 20 day MA by -10.78% and its 50 day MA (signal line) by -6.21%. So it is a change of character compared to the last 3 months MA breadth, which has spent 90%+ of the time trending higher above the moving averages, with only shallow pullbacks.
So the status has changed to a Difficult Environment for the first time since April. Hence, the strategy based on this data suggests increased caution (defense), especially if it doesn't regain the 50 day MA (signal line) quickly.
The Point and Figure (P&F) chart (shown above) had a powerful reversal to a column of Os this week, with a double bottom breakdown by Thursday, and follow through lower on Friday. So the P&F strategy changed to Defense (as it is in a column of Os), and P&F Bear Confirmed status in the lower-middle of the field.
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.