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Market Breadth: Percentage of Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined

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49.14% (-6.35% 1wk)

Status: Positive Environment in the Stage 1 zone

The US Total Percentage of Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages had the biggest one week pullback since the June low with a the overall average at 49.14%, which is a decline of -6.35% over the prior week. But it remains right on the middle of the Stage 1 zone (40% to 60%), and so it has plenty of scope to pullback further without reentering the Stage 4 zone. Although that remains a possibility of course, as it's in a very neutral position, and so there's no guarantee that the Stage 1 behaviour we've been seeing will necessarily transition to Stage 2. But as long as the combined breadth average remains above its own rising 50 day MA – which its currently 18% above – then it will remain on positive environment status. Although if it starts falling back into the Stage 4 zone below 40%, while still above the rising 50 day MA, then that would signal more caution again.

But I will talk more about this and all of the other combined moving average breadth charts from the full members post in detail during the Stage Analysis Members weekend videowhich is scheduled for later on Sunday afternoon EST.

The Point & Figure chart saw no box or column change this week, although it's very close to a potential reversal to a column of Os, which would be a break below 48%. If it does reverse to a column of Os, then that would change the strategy to defense. But currently it remains in a column of Xs, and so is on offense until the column changes.

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Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.