Only 27% of S&P 500 sectors are currently above their 50-day moving average.
Here’s the chart:
Let's break down what the chart shows:
The blue line in the top panel shows the price of the S&P 500 index.
The red line in the top panel shows the 50-day moving average of the S&P 500 index.
The black line in the bottom panel shows the percentage of S&P 500 sectors above their 50-day Average.
The Takeaway: As of yesterday's close, only 27% of S&P 500 sectors are currently trading above their 50-day moving average… In short, this breadth reading needs to improve sooner rather than later, as the S&P 500 typically faces challenges when the majority of sectors are below their 50-day moving averages.
The 10% correction we experienced in late February into early March caused some damage to the intermediate trend. However, over the past seven trading days, we have seen a resurgence of bullish activity, with the S&P 500 index climbing over 4%. While...
S&P 500’s price is currently trading under its 10-month moving average.
Here’s the chart:
Let's break down what the chart shows:
The black line is the S&P 500 index price.
The red line is the 10-month moving average of the S&P 500 index price.
The gray lines highlight when the price is above the 10-month moving average.
The Takeaway: With just six trading days left in the month, there's one model I'm paying close attention to. The bulls need to work hard to push the S&P 500 price back above its 10-month moving average. At the moment, the S&P 500 is 1.7% below this moving average. If the price stays below it, this could create challenges for stocks.
I have done the math… Take a look at the table on the chart.
If you've been following me for some time, you know that I like to know what type of market environment we’re in. One of the simplest strategies I use for assessing the longer-term environment is: If...
The Philadelphia Gold and Silver Index just closed at fresh 12-year highs.
Here’s the chart:
The Takeaway: The Philadelphia Gold and Silver Index, an index of thirty precious metal mining companies traded on the Philadelphia Stock Exchange, closed yesterday at a fresh 12-year high.
This base-on-base breakout in the Philadelphia Gold and Silver Index suggests the path of least resistance is higher for precious metals.
100% of the stocks in the index are above their 50-day moving average.
80% are above their 200-day moving average.
If you didn't know already, we’re in the midst of a serious gold rush.
There is nothing bearish about this for precious metal stocks!
