A Positive Breadth Reading

Below we highlight our trading range and 50-day moving average charts for the S&P 500.  The trading range chart highlights historical overbought and oversold levels for the index and the 50-day moving average chart highlights the percentage of stocks in the index that are currently trading above their 50-days. 

While the S&P 500 is still struggling below its 50-day moving average and trading far from levels seen in 2007, the percentage of stocks above their 50-days is showing signs of strength.  Prior to yesterday, more than 50% of stocks were above their 50-days (currently at 46%).  This underlying breadth is a big pickup from the range it has been in for a couple of months now and bodes well for the market going forward.

These charts are part of our weekly Sector Snapshot available to Bespoke Premium subscribers.

Comments

[mforbes42]

I'm just wondering if the chart of the percentage of stocks above their 50 day moving average is based on the components of the S&P 500, or another index? From my data (as of Friday's close), I have the percentage of S&P 500 stock above their 50 day moving average standing at 35.4%.

Matt