Wednesday Market Momentum, Breadth, Volume
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
Below is a chart of the cumulative NYSE advance /declines that have shown unbelievable strength since last summer's lows. Last April, this indicator showed a negative divergence with prices that hinted of the sell off that came in May. Currently, the indicator shows a little hesitation, and the smoothed MACD is looking like it wants to roll over and head lower, but the chart indicates that the highs in price have been confirmed by the trend in advance /declines. This has been a strong bull market for sure.
The chart below shows a series of slightly weakening technical indicators that includes the new highs /new lows, percent above the 50-day and percent above the 200-day. All six of the 20-day moving averages of the indicators touched their prior peaks in bullish fashion, but are now below the prior highs indicating some weakening momentum and declining participation for the NYSE and NASDAQ.
In an aging intermediate cycle of a bull market, you'd expect to see the level of new lows increasing as the market forms a topping pattern. However, despite a mid May pick up in new lows for the NASDAQ, these numbers have looked very favorable for equities.
Below is the OBV for the NYSE and the SPX. The volume trend for the NYSE doesn't look weak at all, and the same strength shows up in many of the major indexes. But there are a few indexes showing the early signs of a weakening trend in volume such as the S&P 500.
