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Market Breadth Report

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

We had modestly positive week and modestly negative Breadth change:

  • 67% of the S&P 500 (SPY) index listed stocks are bullish - unchanged from a week ago - Bullish;
  • 67% of the DJI (DIA) index listed stocks are bullish - down by 3% from a week ago - Bullish;
  • 64% of the NASDAQ 100 (QQQ) index listed stocks are bullish - unchanged from a week ago - Bullish;
  • 64% of the Russell 2000 (IWM) index listed stocks are bullish - unchanged from a week ago - Bullish;
  • 52% of the NYSE index listed stocks are bullish - down by 1% from a week ago - Neutral.
    Source: https://www.marketvolume.com/advance_decline/highlowrangechartsimple.asp

The major indexes reported positive week, however, this did not led to increase in the number of the bullish stocks. In opposite, the balance between bullish and bearish stocks remained unchanged and we recorded a drop in the number of the bullish stocks on the NYSE.
An increase in the number of the bearish stocks was not strong. The final NYSE number remains below 50%. So far, 52% of the NYSE listed stocks are bullish and that gives us the opportunity to hold to the long-term Bullish Breadth sentiment. However, this number is too close to the 50% threshold - therefore, the long-term market Breadth sentiment and long-term outlook are weak Bullish
NYSE Composite index Breadth chart: green line (bullish stocks); red line (bearish stocks)

The last week of summer-vacation season did not bring a lot of changes into the short-term Breadth sentiment as well. As of now:

  • 63% of the S&P 500 stocks are above their 200-day MA - up by 1% from a week ago - Weak Bullish,
  • 66% of the S&P 500 stocks are above their 120-day MA - unchanged from a week ago - Bullish,
  • 66% of the S&P 500 stocks are above their 50-day MA - unchanged from a week ago - Bullish.
  • 65% of the Russell 2000 stocks are above their 200-day MA - unchanged from a week ago - Bearish,
  • 63% of the Russell 2000 stocks are above their 120-day MA - down by 1% from a week ago - Bullish,
  • 57% of the Russell 2000 stocks are above their 50-day MA - up by 1% from a week ago - Bullish.
    source: https://www.marketvolume.com/advance_decline/percentabovemovingaverage.asp

The Breadth remains Bullish on all timeframes in both Large and Small Cap sectors. Last two days of the week brought some negative momentum (drop in the number of the bullish stocks), however, this momentum was weak and it did not affect the overall weekly numbers. Still, we are entering September of a slightly negative note. As of now, the next week sentiment is neutral. Next trading session will open the Fall season and as the investors are back from their vacations, we may get more clues about market sentiment.
S&P 500 Percent above 50-day MA

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