Wednesday
Nov102010
Breadth Pulls In Slightly
Wednesday, November 10, 2010 at 04:27PM After a few days of down and sideways trading, the percentage of stocks in the S&P 500 trading above their 50-day moving averages has fallen from 90% to 81%. The only question now is whether or not the indicator will continue to roll over like it did back in April/May.
We've seen some divergence amongst sectors in recent days as well. While sectors like Consumer Staples, Health Care, Utilities, Materials, and Industrials have seen a drop in the percentage of stocks above their 50-days, the reading for the Technology and Energy sectors has remained very strong.
Reader Comments (1)
This indicator is a waste of time; it's obsolete. The market is never going down again; email Mr Bernanke, otherwise known at the Gran Master of New Alchemy, at the Fed if you don't believe me.