Friday Momentum, Breadth, Volume
All charts and comments intended for education and discussion purposes only. No investment recommendations are being offered. Comments below related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Sentiment | THU - Commodities & Currencies | FRI - Market Breadth | SAT - Bullish Percents | About |
The NYSE looks healthy based on prices hitting new highs, but the OBV peaked out in December. This is not the index receiving a lot of new investment money at the moment.
The NASDAQ finally joined the new-high party, and the OBV has followed along. Volume is confirming the price highs and this looks healthy, or at least better than the NYSE at the moment.
This is by far the chart of the week. The SOX finally breaking this down trend line. Now it just needs to break above the near term resistance set in November and December. With the SOX participating in the rally, and funds flowing from the NYSE to the NASDAQ, the market may be able to extend. But don't forget how overbought the market is... there is a lot of risk as well.
More confirmation of the price highs from the percent of stocks above the 200-day moving average. This index is now near the prior high of last spring, but as you can see from last spring, it can stay at this level for a while.
Below are the new highs, new lows. The ratio is very favorable. On the NYSE, a 20-day moving average of 265 highs vs 12, and on the NASDAQ, a 20-day moving average of 148 to 29. This is the major chart to watch to view the underlying market health, and right now it continues to look healthy.
This buy/write index is showing perhaps a little weakness in the Dow, but again the NASDAQ is looking fine and leading the others.
Sorry, the charts are out of order here. Another way of viewing new highs, new lows. You see last April, the new lows started to rise significantly in advance of the eventual market sell off. A similar pattern may develop with this cycle as well but no indication of it yet.
More evidence that money is flowing into the NASDAQ. Probably because there is so much more room for the NASDAQ to advance from here. 62% of NASDAQ stocks on a P&F buy signal is not yet overbought.
