[isatrader]

looking at the sectors chart of percentages of stocks above the 150 day MAs, with 7 out of the 9 being underneath 70% (the two sectors above being the defensive sectors, energy and utilities), would you assume the likelyhood is that the NYSE will follow the NASDAQ lower?

The sector breadth includes both the Nasdaq and NYSE stocks, and it's the weakest it's been since I started following it each week more than a year ago, and so with all sectors falling into the mid range zone between 30% and 70% I'd say it confirms that the market is in Stage 3 currently with two/three of the largest sectors in Stage 4 territory around or below 40%. So my opinion is that this will continue to develop and we will eventually move into Stage 4 across the board as we haven't been to the lower range in any sector since 2011.

Below is the sector breadth charts for 2011/12 and the current 2013/14 so you can compare the two time periods with the market. As you can see, in 2011 most sectors got below 20%, even defensive sectors, and some went below 10%. Compare that to where we are now and you can see that even sectors that have been devastated recently could have a lot further to go.

2011/12

   

2013/14