As shown below, 75% of the stocks in the S&P 500 are currently trading above their 50-day moving averages. This indicator has been trending slightly downward for about a month now, but it hasn't fallen below the 75% mark for quite some time. Generally, whenever this breadth reading gets above the 80% level, the market is due for a breather.
All of the stocks in the Telecom sector are currently trading above their 50-days. Unfortunately there are only 5 stocks in the sector! The next two sectors with the highest breadth readings are Financials and Technology at 83.3%. This is positive for market bulls since these are the two largest sectors of the market. If Tech and Financials are doing well, chances are the broad market is doing well. Three other sectors have breadth readings above the overall S&P 500's reading of 75% -- Energy, Health Care and Materials. The four sectors with below-market breadth readings are Industrials, Utilities, Consumer Discretionary and Consumer Staples. The two consumer sectors have the lowest percentage of stocks above their 50-days. Discretionary is at 65.5% and Staples is at 60%. While readings at 60% or above are strong, we'd like to see consumer sectors outperforming instead of underperforming.
The Closer is a one-stop-shop for a summary of key trends from each trading day. Each edition is packed with analysis, charts, tables and models to help you understand what happened in the latest market session. The Closer hits your inbox with the following sections every evening after the close:
- Featured Analysis. Bespoke's trading and research team collaborates to bring you two pages of commentary on the day that was, including clear charts on individual equities, sectors & indices, and non-equity asset classes that are impacting the market.
- The Tale of The Tape. This intraday chart gives the key relationship we saw in equities on any given day. The chart will change as the flows between equities, rates, currencies, commodities, and credit change. Other days cross-asset flows won’t be as important as trends within equities themselves so we’ll occasionally show intraday comparisons versus recent history or between the S&P 500 and other key sectors or indices.
- Biggest Movers. This simple table shows the top and bottom 1% of the US equity markets from today, with tickers and returns for the 15 stocks that performed best and worst in the S&P 1500. We’ve also included the stocks that had the biggest volume days relative to their recent historical average trading volume.
- Major Asset Class Performance. The Morning Lineup features a series of key asset class charts, and we think these are just as important to close the day as they are to open it. Check here for updates on the performance of oil, gold, the USD index, long bond futures, the S&P 500 and the Nasdaq Composite over the last 15 trading sessions.
- Key ETFs. This easy to read list keeps you on top of how each market is moving, as we show performance on the day for the 47 ETFs Bespoke keeps a close eye on. Also included are sparklines to give an at-a-glance view of how each ETF has done over the last six months, including highs and lows over that period.
- Most Popular Tweets from Bespoke. In this section, we highlight tweets from the day that created conversation on Twitter. It can be tough to stay on top of everything going on in social media, so this section will give you a quick summary of the thoughts we shared during the trading day. Want to keep track of what we’re seeing in real time? Head on over to http://twitter.com/bespokeinvest any time.
- Bespoke Market Timing Model. Our model is a compilation of many widely (and not so widely) followed market indicators that formulates a prediction for the short term direction of the market. While most investors have one or two indicators they rely on, we recognize that no indicator by itself is correct all of the time. With this in mind, we set out to create a series of indicators from multiple disciplines in order to see what the 'crowd' of indicators are telling us. Just as no individual is bigger than the market, we contend that no single indicator is more accurate at forecasting the market than the sum of them all.
- Bespoke Stock Odds. The Stock Odds report helps traders quickly identify the leaders and laggards of the market. The product is unique, however, because it not only shows which stocks have recently had the biggest moves, but also how they typically react following similar moves. Anyone can produce a list of the day's best and worst performers, but we have gone the extra step to focus on what it means going forward.