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

Wednesday, March 29, 2017

$SPY Pattern and Trend

Conventional wisdom was proven correct, and the indices are advancing into month/quarter end. Although the NDX made new highs during this rally, the SPX and DJIA pattern shows lower lows and highs still in place:

















The resilience of this advance will be tested very soon, as market internals have become overbought:
















As can be seen from the chart above, overbought market internals often precede a sideways/down market phase, while oversold market internals usually lead to a sideways/up move.

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