Wednesday, November 09, 2016 7:47:38 PM
SP1500 3 BREADTH INDICATORS BY ART HILL
Indicators are Not Bearish until they Trigger
The broad market breadth indicators remain on a bullish signal since March and have yet to signal a bearish reversal. The chart below shows breadth indicators for the S&P 1500, which includes large-caps, mid-caps, small-caps, Nasdaq stocks and NYSE stocks. All major groups need to be present when measuring breadth. The signal levels are set to filter out noise and focus on significant shifts in participation. Breadth is net bullish when at least two of the three indicators are on bull signals (green lines) and net bearish when two of the three are on bear signals (red lines).
1 ...The 10-day EMA of AD Percent triggers bullish with a surge above +30% and bearish with a plunge below -30%. It is currently at +9% and far from a bearish signal.
2 .... High-Low Percent triggers bullish with a move above +10% and bearish with a move below -10%. It is currently at +3.73% and far from a bearish signal.
3 .... The %Above 200-day EMA triggers bullish with a move above 60% and bearish with a move below 40%. It is currently at 53.8% and also fairly far from a bearish signal.
Bottom Line: Regardless of recent events and the sharp drop in stock futures, the stock market remains in a bull market environment and I have yet to see any evidence to the contrary.
Indicators are Not Bearish until they Trigger
The broad market breadth indicators remain on a bullish signal since March and have yet to signal a bearish reversal. The chart below shows breadth indicators for the S&P 1500, which includes large-caps, mid-caps, small-caps, Nasdaq stocks and NYSE stocks. All major groups need to be present when measuring breadth. The signal levels are set to filter out noise and focus on significant shifts in participation. Breadth is net bullish when at least two of the three indicators are on bull signals (green lines) and net bearish when two of the three are on bear signals (red lines).
1 ...The 10-day EMA of AD Percent triggers bullish with a surge above +30% and bearish with a plunge below -30%. It is currently at +9% and far from a bearish signal.
2 .... High-Low Percent triggers bullish with a move above +10% and bearish with a move below -10%. It is currently at +3.73% and far from a bearish signal.
3 .... The %Above 200-day EMA triggers bullish with a move above 60% and bearish with a move below 40%. It is currently at 53.8% and also fairly far from a bearish signal.
Bottom Line: Regardless of recent events and the sharp drop in stock futures, the stock market remains in a bull market environment and I have yet to see any evidence to the contrary.
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