- Rank: 36
- Followers: 26
- Votes: 273
- Years Member: 3
- Last Update: 3 August 2021, 13:30
Market Breadth Analysis
General Market Commentary
The major indexes look fine but,
The average drawdown in the SP500 is 8.2 percent, for mid-caps is 13, 18 for small-caps...
Which part of this is not representative of a stock market correction? -- JC Parets
Hmm. Perhaps the correction was just a rotation below the surface and now it has reset and we can head higher. However, strong earnings reports were sold into so maybe the correction is broadening. August is normally a weak month. I realize this is not helpful on direction.
Things are very messy and I do not trust it. Do you? Many successful investors I follow have higher levels of cash. I do too.
Correction watch: Lower immediate risk of a drop > 5%
Consider: precious metals (GLD GDX SLV), industrial metals (COPX SLX), bonds (AGG TLT)
101 Buy-and-Holders: bullish but slowing
102 Investors: bullish but weaker
103 Swing Traders: weaker but may have reset for the next leg up
105 Storm Track: bearish
106 Aggressive?: bearish
107 Defensive?: up = bearish
108 Top?: local top signal passed
109 Bottom?: no bottom indicated
110 Intermarket: mixed
111-113: Sectors (cap weight, EW, small cap): bullish: large tech, health care
114 Size & style: large
115 Factors: large, growth, domestic
116 US Dollar: turning up = bearish for foreign and commodities
400-405: Factor ETF relative strength (RS): REZ XLV XLK IGV
5XX: ETFs for reference
"Trading in the Zone" by Mark Douglas about the mental game.
Note: Profile says PRO but I am an engineer. Updates on weekends.
"It is enough to identify prevailing conditions and respond to them as they change, without any need to predict." -- John Hussman
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