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Bearish Short-Term Breadth

|Includes: SPDR Dow Jones Industrial Average ETF (DIA), QQQ, SPY

Summary

Long-term market Breadth.

Short-term market Breadth.

Next week outlook.

Past week was mixed. The Russell 2000 is traded at all time high, the Nasdaq 100 climbed close to the all time high and the DJI is 0.5% down for the week. The Breadth sentiment weakened on all indexes with exception of Russell 2000 over the past week:

  • 55% of the S&P 500 index (SPY) listed stocks are bullish - down by 2% from a week ago - Weak Bullish sentiment;
  • 56% of the DJI index (DIA) listed stocks are bullish - unchanged from a week ago - Weak Bullish sentiment;
  • 60% of the NASDAQ 100 index (QQQ) listed stocks are bullish - down by 1% from a week ago - Bullish sentiment;
  • 63% of the Russell 2000 index listed stocks are bullish - up by 2% from a week ago - Bullish sentiment;
  • 47% of the NYSE index listed stocks are bullish - up by 1% from a week ago - Weak Bearish sentiment.
    Source: Market Breadth Analysis

The sentiment may not look bad. We still have the dominance of the Bullish stocks on the S&P 500, DJI and Nasdaq 100. The negative thing is that since the begging of April of 2018, the market has been in the recovery mode, yet, the Breadth sentiment remains on the edge of turning bearish.

Since February of 2018 the bigger part of the NYSE Composite stocks are trading closer to their 52-week lows. This makes us to continue keeping the long-term Bearish market Breadth


When we look at the short-term breadth on the S&P 500, despite modestly positive week (S&P 500 ended week 0.5% up) we see increase in the number of the Bearish stocks.

  • 53% of the S&P 500 stocks are above 200-day SMA - down by 2% from a week ago - Weak Bullish,
  • 45% of the S&P 500 stocks are above 120-day SMA - down by 1% from a week ago - Bearish,
  • 57% of the S&P 500 stocks are above 50-day SMA - unchanged from a week ago - Weak Bearish.

This increase in the number of the bearish stocks favors the Bears for the coming week.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.