From a stage analysis view, markets are in mixed territory. I rate 4 of the indicators as neutral. The DOW, global DOW and S&P are above their 30 week moving average line, but the MA is sloping down or flat. Not exactly a sign of strength.
One of my favorite Stan Weinstein charts is the NYSE High Low Differential which looks at the difference between the number of stocks hitting their 52 week highs and 52 week lows. Each week I look at the number of new 52 week highs and the number of new 52 week lows. For example, this week we had 44 stock reaching new highs and 7 stocks reaching new lows. Not much action at all. In a strong recovery the numbers are more like 389 to 30 respectively. So while this indicator is in the green, it's not by much and the highs versus lows is not that broad.
Here is my chart. I have found that this one chart can give a pretty decent indicator of the overall market, even though it's a very simple chart.
Also keep in mind we are heading into an election plus COVID is not over yet so the market can get pretty choppy yet.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.