Market Breadth Data******************************

Tuesday, February 28, 2017

$SPY Trend and Breadth

On February 22nd. we observed that the SPX is entering a consolidation phase. Market breadth declined ahead of President Trump's speech to Congress and has now reached oversold levels:

(Source: Market Breadth)

This opens the door for a new up phase to begin.

Sunday, February 26, 2017

$SPY and Market Breadth

On February 11th. we observed that market breadth on the NYSE is diverging from price. And that continues to be the case today:

Now mainstream banking, represented by JPM (as reported by ZH), is coming to the same realization:

Friday, February 24, 2017

$SPY and Tax Reform

With the elusive uuuuge tax reform plan slipping away, somebody is finally getting cold feet. Both SPX and NDX momentum turned neutral:

Wednesday, February 22, 2017

$SPY Momentum and Trend

Market internals show that since Feb 16th. the market has been advancing on fumes:

It is entirely possible, that in a very strong uptrend, the market can continue grinding higher, while market breadth gets through a declining cycle, but those are rare events. The most likely scenario is that the indices will enter a consolidation phase since bearish momentum rarely follows immediately after a prolonged period of bullish momentum.

Tightening stops is the prudent course of action.

Tuesday, February 21, 2017

$SPY Momentum Update

Daily momentum remained strong for the SPX and NDX.
SPX support @2340:

NDX support@ 5280:

The August '16 upswing lasted 34 trading days.Today marks the 34th trading day of the current, January '17 upswing.

Sunday, February 19, 2017

$SPY Momentum and Trend

Early NDX and SPX weekly futures trading showing the November '16 rally momentum remaining strong.
Upside NDX target 5380:

Upside SPX target 2380:

During the last 50 years, there have been several uninterrupted stretches of 22 weeks and one of 28 weeks.

Thursday, February 16, 2017

$SPY Pattern and Trend

Yesterday was an inside day for the SPX but upside momentum hasn't been broken yet. At the current rate the market will need three days to work off overbought breadth conditions which normally results in choppy, sideways/down action:

The NDX managed to squeak in a marginal new high:

Wednesday, February 15, 2017

$SPY Pattern and Trend

The SPX and NDX tax/stimulus anticipation rally continues unabated despite market internals getting overbought and a spike in VIX:

$SPY Wall of Worry

Both the SPX and the NDX continue climbing the proverbial wall of worry. None of the reversal levels were even remotely challenged during yesterday's morning drop, and new highs were made in the afternoon:

Monday, February 13, 2017

$SPY Breadth and Trend

Market breadth has now reached overbought levels (3600) and it would be interesting to see if the SP500 can continue to advance, in anticipation of tax cuts and stimulus, or will follow the natural market breadth ebb and flow, and start a sideways/down phase:

If the SPX and NDX are unable to make new highs on Tuesday, that will signal that the market is running out of steam. For tangible signs of reversal, a drop below 2300 for the SPX is needed:

For the NDX, the first sign of trouble comes below 5215:

Sunday, February 12, 2017

$SPY Momentum and Trend

Daily upside momentum for the SP500 continues in early trading (pre-market open), as evidenced by the presence of a green dot above the current price bar. For credible signs of trend reversal a drop below 2300 is needed:

The purple diamonds at the bottom of the chart show periods of low volatility/momentum which can lead to whipsaws.

Saturday, February 11, 2017

$QQQ Price and Time Update

The Qs nailed the price and time target set on January 27th. by reaching the 127.6 channel projection. Following a series of new highs, which left a couple of unfilled gaps, Market internals are nearing overbought levels, which usually precedes a sideways/down phase:

Market breadth on the NYSE continues to lag price action of the broader indices, such as the SP500:

Thursday, February 09, 2017

$QQQ Upside Target

The Qs are closing in on the first upside projection made a couple of weeks ago:

(Data courtesy of OddsTrader)

Tuesday, February 07, 2017

$SPY Pattern and Trend

Day 40 of the consolidation and a potential second island reversal in the making:

$FANG and $SQID update

With the SQIDs in a continuing uptrend, the FANGs seem poised to retest the upper channel:

Saturday, February 04, 2017

$SPY Pattern and Trend

The SP500 index continues to hold onto the '16 uptrend angle, and remains in a strong position:

Market breadth is supportive of a continuation of the up move.

Friday, February 03, 2017

$SPY Trend, Support and Breadth

In terms of market breadth, the SP500 is getting oversold just before the release of the payroll report. Trading above support at 2250 will pave the way for the next sideways/up phase:

Thursday, February 02, 2017


For easy comparison, we now offer two composite charts at the bottom of this blog: FANG (FB, AMZN, NFLX, GOOG) and SQID (SPY, QQQ, IWM, DIA):

The FANG and SQID charts, along with the SPX Market Breadth chart, get updated on a daily basis, a few hours after the close.

The Market Breadth gauges get updated live, during the trading day, and provide a rare behind the scenes look at market breadth and internals:

Wednesday, February 01, 2017

$SPY Monthly Data

Monthly Bulls data for the SP500 showing a modest uptick in January, and a continuing uptrend since February '16:

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