Primary Market Trend: Market Health: Percent of Stocks Above the 50 Day Moving Average - 01/04/24

(01/04/24)

Breadth components consist of daily and weekly data. They include Advances, Declines, Unchanged, Total Issues, Up Volume, Down Volume, Total Volume, New Highs and New Lows, % of stocks above various moving averages and more. 

Further yet, we can take that approach to monitoring credit indicators and spreads between various markets to round out as complete a picture as possible of the health of the current market. - Greg Morris - Market Breadth Indicators

• In view of market weakness to start the new year, it is important to view recent action in context of an unusually strong breadth momentum. 

• Below we see the percent of stocks above the 50 Day Moving Average and the number of times that has crossed 90% after a market pullback of less than 15%.

• This is supported by the weight of evidence which suggests the Primary Trend remains up. Anecdotally, strength in iron ore, and incredible strength in metallurgical coal stocks also make it difficult to have a strong recession outlook.

• Our Chart of the Day is intended to be a standalone technical chart. 

• We use them to highlight open positions, stocks on our watch list, or indicators that we believe are important, or just interesting at the time.

• These charts are not a directional market call. 

• Feel free to share them with others who may be interested.