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Key Points

  • NYSE Advance/Decline Line Makes a Higher High
  • NYSE New Lows Trend Lower
  • NYSE New Highs Rise Further
  • S&P 500 Advance/Decline Line Nears the Former High
  • Another Higher High for the NASDAQ 100 Advance/Decline Line

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NYSE Breadth

The NYSE Advance/Decline Line has made a higher high above the now rising 50-day moving average. The S&P 500 Index has done the same. The indicator confirms the recent strength that we have seen in the index.

The five-day moving averages of issues on the NYSE making new 52-week and six-month lows continue to trend to the downside below the 2% level.

The five-day moving averages of stocks on the NYSE making new six-month and 52-week highs continued to improve over the past two weeks. The improvement is more pronounced in the six-month data, but both are encouraging for equity bulls.

The percentage of NYSE issues trading above their respective 200-day moving averages moved to 28% this week from 19% two weeks ago. The S&P 500 is now within striking distance of its 200-day moving average.

The percentage of NYSE issues trading above their respective 50-day moving averages rose to 76% from 59% two weeks ago. The S&P 500 is above its rising 50-day moving average.

The percentage of issues on the NYSE trading above their respective 20-day moving averages rose to 81% this week from 79% last week. The S&P 500 is above its rising 20-day moving average.

S&P 500 Breadth

Breadth metrics for the S&P 500 improved over the past two weeks.

  • Advance/Decline Line: Above the 50-day moving average, nearing the high.
  • Percent Above Their 200-Day Moving Average: 25% from 25% two weeks ago.
  • Percent Above Their 50-Day Moving Average: 83% from 67% two weeks ago.
  • Percent Above Their 20-Day Moving Average: 86% from 85% two weeks ago.

Small Cap Breadth

Breadth metrics for the S&P 600 Small Cap Index have mostly improved over the past two weeks.

  • Advance/Decline Line: Above the 50-day moving average and made a higher high.
  • Percent Above Their 200-Day Moving Average: 40% from 31% two weeks ago.
  • Percent Above Their 50-Day Moving Average: 76% from 66% two weeks ago.
  • Percent Above Their 20-Day Moving Average: 76% from 85% two weeks ago.

NASDAQ 100 Breadth

Breadth metrics for the NASDAQ 100 have improved this week. 

  • Advance/Decline Line: Above a rising 50-day moving average.
  • Percent Above Their 200-Day Moving Average: 39% from 25% two weeks ago.
  • Percent Above Their 50-Day Moving Average: 88% from 78% two weeks ago.
  • Percent Above Their 20-Day Moving Average: 86% from 81% two weeks ago.

Take-Aways:

Two weeks ago in these pages, we highlighted that the door was open to a move to the 200-day moving average for the S&P 500. Over that span, the market has trended to the upside, and 200-day is within range. Meanwhile, breadth metrics continue to improve across U.S. markets.

This daily note IS brought to you by Research by Potomac. Access the full Advisor toolkit and get a deeper look at the markets.

Disclosure: This information is prepared for general information only and should not be considered as individual investment advice nor as a solicitation to buy or offer to sell any securities. This material does not constitute any representation as to the suitability or appropriateness of any investment advisory program or security. Please visit our FULL DISCLOSURE page.