RE: Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis
Looking at the sectors identified in my previous post
Smaller numbers of stocks in each sector means that some of the breadth data has visible granularity. Be aware of this. Overall though likely still interesting, even if from a limited sample.
Technology
'Price' (index) action is looking good [1]. Weinstein Momentum [4] and 1% A/D [5] are below zero but could conceivably cross above it soon. % stocks above the 20, 50 and 200 day EMAs all increasing [10, 11 & 12]. Overall looking bullish.
Consumer Staples
This is a defensive sector that people run to when other areas get too risky. No higher high nor higher lows yet [1]. % stocks above their 20, 50 and 200 day EMAs are rising. Looks like it is in Stage 1 to me.
Industrials
Positive signs in most breadth indicators, but the index itself looks like it is in Stage 3, and with recent lows of a week or two ago being lower than previous this looks like it could go into Stage 4.
Healthcare
You can clearly argue higher highs and higher lows looking at June, August, September/October, December and March. A longer timescale or 2 years (not shown) makes the 'price' [1] look more like the end point of a longer period of Stage 3 volatility. If we take August and December as highs then the Advance Decline line [2, red] is diverging negatively, but the Advancing / Declining Volume line [2, yellow] is not. % stocks about the 20, 50 and 200 day EMA are increasing. I think that we are seeing the increase in strength as there is the climb out of a low in a volatile sector - but would not like to say much more.
Materials
Again, I think this breadth is stronger as it is climbing out of a is a local (lower) low. Would not like to call this one. Maybe a longer term breadth chart would give more insight, but that is taking a while to calculate, so I likely won't do it tonight. It looks like part of a long Stage 3.
Communication Services
This had been one of the weaker sectors. 'Price' [1] now has made higher highs and lows and the 150 day MA is essentially flat and the 50 day MA slopping up strongly. Surely the 150 day MA will iminently slope up noticably. So this looks strong, especially if it breaks above 60. Breadth is generally strong, however, you could argue that the A/D line [2, red] and A/D volume line [2, yellow] are diverging downwards when comparing wit hthe August and February highs. Sample size is small.
Note on chart durations
Its getting late, so I'm not going to do it right now, but it appears that it would be beneficial to plot some of these charts on a 3 year time frame rather than my default 1 year time frame to add context from that longer period.