The chart below is NYSE breadth plotted hourly. (That’s advancing stocks minus declining stocks.) So, each black dot is the breadth reading at that hour. The red line is a 6.5 period moving average, which gives a daily average, and the blue line is a weekly average. (Click chart to enlarge):
Notice that, for today’s rally, the black dots barley made it above the zero line (light blue), let alone up to the red upper bound. So, breadth was weak today, which is why the rally went flat in the last couple hours of trading.
The blue weekly average peaked on May 4th, so that is a negative also. But now look at the recent lows formed by the red moving average starting with the big puke on May 13th. The next two lows on the 21st and 28th were much less-bad. The two purple lines connect those points and show that there is an uptrend to the down days.
The market is struggling here, but it is not deteriorating yet. The next down day will tell us a lot since we will be able to see if the market is able to sustain the less-bad uptrend. The rising purple trend lines show that things are coming to a boil.
(Note: the NASDAQ breadth chart is substantially the same.)
Yerk,
Thanks for the link. Be sure to
give Matt a pat on the back.
Matt,
Great chart. Thanks for sharing.
SPX BBs are the tightest they’ve been in quite some time–56.8.
McC Osc remains <0
Current pattern off 930 fits rounding top and EWT nicely. One day soon my monitor will show me some color.
Matt, here is a link explaining how I use TICK to identify various short term trade set-ups. http://www.whipitaround.com/?p=569