[pcabc]

Market breadth

Interesting going-ons in market breadth.  The S&P500 itself seems to be pulling up from a higher low having made a higher high [1].  This looks bullish and is backed up by the Advance Decline line and its volume counterpart matching this [2].  On the bearish side the % stocks above their 20, 50 and 200 day EMAs [10,11 & 12] have declined as have the silver and gold cross indicies [13 & 14] - though its hard to tell on the latter on the chart posted as its now got too much info to be visible at the resolution posted.  My aggregate scores [A&B] are quite negative apart from the very short term one.

   

The indexes behavious [1, above] however led me to think that a lot of the negative sentiment was just normal for a pull back.  However, there is a bit more to look at.

Brokers versus S&P500
Pring suggests plotting the relative strength of brokers ETF against the S&P500 as a breadth measure.  If the brokers ETF is doing well then thats indicative of a bullish sentiment. Look at the blue plot, this is the R/S of broker dealers against the S&P500, and there has been a plummet of their R/S.  Apologies for the spurious captions, I don't put these charts on line often to the extent that I forgot about the spurious other A/D etc captions.

   


S&P500 & Russell 1000 and their equal weight versions
The Russell 1000 plot if of the equal weight version against the index.  The R/S plot is plummeting, so, given that the equal weight index is the numerator and the standard Russell 1000 the denominate this means the equal weight version of the index is weakening significantly.  I'd support that the reason is the smaller cap stocks falling behind the large caps.
   

Annoyingly the S&P500 and equal weight variant is the other way up, with the S&P500 divided by its equal weight version.  So, when the equal weight version weakens, as it does here, the R/S curve peaks upward.
   


If I post these often I ought to consider cleaning them up and going for a bit more consistency.