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Mixed week in the market -- W/E 9/10

The week seemed OK, not great but OK. We will use our 3 yardsticks because no single yardstick shows us what we need to know. All the data comes from Barchart. Let's see what happened.

Value Line Index -- Contains 1700 stocks so its more representative of the market than the S&P 500 or very narrow Dow 30 -- Down slightly for the week
  • Down by .51% for the week
  • 40% short term Barchart buy signal
  • Closed on Friday at 2376 slightly above its 50 day moving average of 2330
  • 14 day Relative Strength Index is 56.14% and rising

Barchart Market Momentum -- Contains 6000 stocks -- Percentage of stocks closing above their daily moving averages for various periods -- Market seems to be trending higher

  • Friday over 77.82% closed above their 20 DMA, over 69.50% closed above their 50 DMA, over 59.56% closed above their 100 DMA
  • Last Week over 69.42% closed above their 20 DMA, over 65.08% closed above their 50 DMA, over 53.04% closed above their 100 DMA
  • Last Month only 37.65% closed above their 20 DMA, over 53.59% closed above their 50 DMA, only 42.25% closed above their 100 DMA

Ratio of new highs/new lows for various time periods -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- Bullish for all time frames

  • 1 month new highs/new lows -- 682/148 = 4.61
  • 3 month new highs/new lows -- 292/93 = 2.82
  • 6 month new highs/new lows -- 147/65 = 2.26

Summary and Investment Strategy -- The market seems to be getting more solid. I'll continue to trim stocks no longer maintaining upward momentum and make new additions that fit my criteria.

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.