[badcharts]

Here's the overview charts of the US Bullish Percent and Moving Average Breadth.

Note: The S&P 500 cleared the March high level this week and the moving average breadth is in the mid 60% range, and so is making an attempt at moving into Stage 2 again. However, it closed the week with a strong down day, which caused the weekly candle into a squat for it's weekly close. So, it's a very tentative breakout attempt currently, and so needs a follow through week with strong positive close before I'm ready to call it a Stage 2 again.

The Nasdaq composite had a bad week due largely to the Facebook move, which had a knock on effect across the tech stocks that make up a lot of it's components, and small caps pulled back too. Whereas the Dow and NYSE had a strong week. So as others have already mentioned, there maybe some rotation occuring from the sectors that have been leading to the laggards.

Overall, it remains a difficult period to trade currently with very few good quality low risk setups appearing in the scans.

Hi Isa,

What value do you put on Stan's momentum index (200d avg of NYSE ad line)? 

He says to look for divergence to spot ahead of time simple corrections (when divergance occurs over several weeks) or market crash (when divergence occurs overs months).

I would like to agree with simple sector rotation explaining the change in strengths of sectors, but the MI is telling me something is up...

But does it matter? It does make for good conversation around the dinner table!

As long as S&P500 stays in Stage 2 on weekly chart, and I don't have a top formation monthly confirmed breakdown, I can get onboard the sector rotation thesis.. 

Regards,

Patrick