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

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41.41% (+11.60% 1wk)

Status: Neutral Environment – Stage 1 zone

The US Total Percentage of Stocks above their 50 Day, 150 Day & 200 Day Moving Averages (shown above) rebounded strongly this week, closing the week with a +11.60% gain over the prior week.

The overall combined average now stands at 41.41% in the US market (NYSE and Nasdaq markets combined) above their short, medium and long term moving averages, and has moved into the more neutral lower-middle zone.

With this weeks bounce, the distance below its own 50 day MA signal line has improved to -9.10%, and so it's no longer at an extreme anymore, and has moved into its normal range. While the distance above/below its shorter-term 20 day MA turned positive this week, as it's now +6.31% above its 20 day MA, which again is in the more normal range for this measure.

So with the improvement this week, the status has changed to Neutral Environment status in the Stage 1 zone (Between 40% to 60% range). 

The Point and Figure (P&F) chart (shown above) reversed to a column of Xs on Thursday 30th with the close above the 36% level, which was highlighted in the members post and on the private Twitter feed*. 

With the reversal to Xs the strategy based on the P&F chart changes to Offense (after seven weeks on Defense), and the P&F status changes to Bear Correction status. As the columns of Os did not reach the lower zone, which would have meant a Bull Alert status instead on the reversal to Xs. However, statuses are less important than which column its in, so because it's in a Xs, it suggests putting the Offensive team on the field and cautiously testing it on the long side. i.e. progressive exposure.

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