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Apple Brought Bulls Back

|Includes: Apple Inc. (AAPL), AMZN, DIA, GOOG, IWM, MSFT, QQQ, SPY

Summary

Long-term Market Breadth.

Short-term market Breadth.

Next week outlook.

High-tech led by Apple (AAPL) pushed the Large cap sector up. As of now:

  • 65% of the S&P 500 (SPY) index listed stocks are bullish - up by 3% from a week ago - Bullish;
  • 60% of the DJI (DIA) stocks are bullish - down by 3% from a week ago - Bullish;
  • 71% of the NASDAQ 100 (QQQ) stocks are bullish - up by 5% from a week ago - Bullish;
  • 61% of the Russell 2000 (IWM) stocks are bullish - unchanged from a week ago - Bullish;
  • 51% of the NYSE stocks are bullish - up by 1% from a week ago - Neutral.Source: https://www.marketvolume.com/advance_decline/highlowrangechartsimple.asp

We continue seeing increase in the number of the bullish stocks in the Large Cap market sector. On the other hand, Small Cap sector shows little to no changes in the Breadth sentiment. the balance between bullish and bearish stocks on the NYSE is around 50% x 50% (see chart below). Neither Bulls nor Bears have clear dominance. Furthermore, we continue hold to the neutral long-term market BreadthNYSE - green line represents bullish stocks and red line represents bearish stocks

When we check the shorter-term Breadth data, the same as on the long-term scale, we are witnessing strengthening in the Large Cam sector and unchanged numbers in the Small Cap sector

  • 62% of the S&P 500 stocks are above their 200-day MA - up by 4% from a week ago - Bullish,
  • 65% of he S&P 500 stocks are above their 120-day MA - unchanged from a week ago - Bullish,
  • 61% of he S&P 500 stocks are above their 50-day MA - down by 3% from a week ago - Bullish.
  • 61% of the Russell 2000 stocks are above their 200-day MA - unchanged from a week ago - Bearish,
  • 61% of the Russell 2000 stocks are above their 120-day MA - unchanged from a week ago - Bullish,
  • 44% of the Russell 2000 stocks are above their 50-day MA - up by 1% from a week ago - Bearish (see chart below).Source: https://www.marketvolume.com/quotes/above-sma.asp

Overall, short-term market Breadth is bullish and favors positive trading for the coming week. This week Apple's earnings report helped to lift the market - something Google (GOOG), Amazon (AMZN) and Microsoft (MSFT) earnings failed to do. The worries are in the Small Cap sector. If the Small Cap's uncertainty spreads out into Large Cap, we could see a halting of the bullish mood. Because of that we consider next week outlook in the favor of side-way and modestly positive trading.Russell 2000 Percent above 50-day MA Breadth chart

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