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Large Cap Up And Small Cap Down

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

Summary

Long-term market Breadth.

Short-term market Breadth.

Next week outlook.

Positive week pushed Market Breadth higher:

  • 61% of the S&P 500 (SPY) index listed stocks are bullish - up by 2% from a week ago - Bullish sentiment;
  • 63% of the DJI (DIA) index listed stocks are bullish - up by 3% from a week ago - Bullish sentiment;
  • 65% of the NASDAQ 100 (QQQ) index listed stocks are bullish - up by 5% from a week ago - Bullish sentiment;
  • 65% of the Russell 2000 (IWM) index listed stocks are bullish - down by 2% from a week ago - Bullish sentiment;
  • 50% of the NYSE index listed stocks are bullish - unchanged from a week ago - Neutral sentiment.Source: https://www.marketvolume.com/advance_decline/market-breadth-analysis.asp

All major index with exception of the NYSE Composite (see chart below) have Bullish Breadth. We may say that the long-term market Breadth is Bullish, yet, this sentiment is very week. The Breadth on the NYSE is playing around 50x50 neutral level for the second week in a row. Also, for the second week in a row, we see increase in the number of the Bearish stocks in the Small Cap market sector (Russell 2000).

Short-term time-frames show strengthening Breadth in the Large Cap sector and weakening Breadth in the Small Cap sector as well.

  • 57% of the S&P 500 stocks are above their 200-day MA - up by 2% from a week ago - Weak Bullish,
  • 56% of the S&P 500 stocks are above their 120-day MA - up by 3% from a week ago - Weak Bullish,
  • 64% of the S&P 500 stocks are above their 50-day MA - up by 6% from a week ago - Bullish.

and

  • 58% of the Russell 2000 stocks are above their 200-day MA - down by 4% from a week ago - Weak Bullish,
  • 62% of the Russell 2000 stocks are above their 120-day MA - down by 3% from a week ago - Bullish,
  • 55% of the Russell 2000 stocks are above their 50-day MA - down by 10% from a week ago - Weak Bullish.

Source: https://www.marketvolume.com/advance_decline/percentabovemovingaverage.asp The Large Cap data favor positive trading and Small Cap data are in the favor of the Bears. The market may go either way - whether bearish sentiment in the Small Cap sector will infect the large Cap stocks, or the Bullishness of the Large Cap sector will spread over the Small Cap stocks.

From the prospective of trading volume we continue seeing luck in trading activity. The large institutional investors are not participating in the current bullish movement up. When it happens it weakens all bullish signals. Overall, next week outlook should be considered neutral in the favor of the side-way trending.

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