Key Points
- NYSE Advance/Decline Line Turns Down Again
- NYSE New Lows Improve a Bit
- S&P 500 Metrics Decline
- Small Cap Breadth is Mixed
- NASDAQ 100 Breadth Turns Down After Recent Improvements
NYSE Breadth
The NYSE Advance/Decline Line remains in a downtrend, below the declining 50-day moving average, which has acted as resistance to rally attempts all year. The S&P 500 is also below its 50-day moving average, and we have yet to see a divergence that piques our interest.
The five-day moving averages of issues on the NYSE making new 52-week and six-month lows have turned lower over the past week but have yet to reach the levels seen in June. This drop is a step in the right direction, but we have seen this show before. These metrics have not been able to sustain low readings for any length of time.
There is still nothing new to highlight as it relates to the five-day moving averages of stocks on the NYSE making new six-month and 52-week highs. Both metrics are below 1%, essentially pinned to the floor.
The percentage of NYSE issues trading above their respective 200-day moving averages moved to 12% this week from 11% last week. The S&P 500 remains below its 200-day moving average, which is now moving lower. The damage that has been done to long-term trends will take time to repair.
The percentage of NYSE issues trading above their respective 50-day moving averages rose to 28% from 26% last week. The index remains below a declining 50-day moving average.
The percentage of issues on the NYSE trading above their respective 20-day moving averages rose to 47% this week from 40% last week. The S&P 500 is testing its 20-day moving average but remains in a downtrend for now.
S&P 500 Breadth
Breadth metrics for the S&P 500 weakened over the past week.
- Advance/Decline Line: Holding below the 50-day moving average.
- Percent Above Their 200-Day Moving Average: 17% from 19% last week.
- Percent Above Their 50-Day Moving Average: 19% from 26% last week.
- Percent Above Their 20-Day Moving Average: 45% from 48% last week.
Small Cap Breadth
Breadth metrics for the S&P 600 Small Cap Index were mixed over the past week.
- Advance/Decline Line: Below the declining 50-day moving average.
- Percent Above Their 200-Day Moving Average: 14% flat from last week.
- Percent Above Their 50-Day Moving Average: 27% from 30% last week.
- Percent Above Their 20-Day Moving Average: 44% from 42% last week.
NASDAQ 100 Breadth
Breadth metrics for the NASDAQ 100 have turned lower this week.
- Advance/Decline Line: Loses the 50-day moving average.
- Percent Above Their 200-Day Moving Average: 14% from 15% last week.
- Percent Above Their 50-Day Moving Average: 33% from 42% last week.
- Percent Above Their 20-Day Moving Average: 50% from 59% last week.
Take-Aways:
It remains hard to make a case for equities based on the breadth dynamics at play. Across the major averages that we track, metrics were mostly lower on the week and continue to sit near levels that confirm the bearish trend in equity prices.
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