Key Points
- New Lows on the NYSE Begin to Stall
- NYSE New Highs Looking to Breakout
- S&P 500 Metrics Improve on the Week
- Small Cap Breadth is Slightly Better
- NASDAQ 100 Data Weakens Again
NYSE Breadth
The NYSE Advance/Decline line is holding below the 50-day moving average after failing to confirm the interim March peak for the S&P 500. The index continues to do battle with its 50-day moving average as the indicator provides very early hints of a base-building process.
The five-day moving averages of issues on the NYSE making new 52-week and six-month lows appear to be peaking in the short-term while the downtrend since the start of the year remains in place. Readings consistently below 5% would be a welcome sign for equity bulls.
The five-day moving averages of issues on the NYSE making new six-month and 52-week highs are making another attempt at a break above the peaks seen in 2022. A break and hold above those levels would be a welcome data point for equity bulls.
The percentage of NYSE issues trading above their respective 200-day moving averages rose to 32% this week vs. 29% last week. The small increase has done nothing to change the bearish trend that has gripped this indicator since early 2021. At the same time, the S&P 500 is below a flat 200-day moving average.
The percentage of NYSE issues trading above their respective 50-day moving averages rose to 45% from 41%. This indicator has been showing signs of improvement for the past few weeks, but bulls want to see readings consistently above 50%. The S&P 500 is trying to hold its ground above a flat 50-day moving average.
The percentage of issues on the NYSE trading above their respective 20-day moving averages has moved up to 47% this week from 40% last week. The S&P 500 remains below its 20-day moving average as the indicator holds below 50%.
S&P 500 Breadth
Breadth metrics for the S&P 500 have improved over the past week.
- Advance/Decline Line: Holding above the 50-day moving average.
- Percent Above Their 200-Day Moving Average: 50% from 47% last week.
- Percent Above Their 50-Day Moving Average: 63% from 54% last week.
- Percent Above Their 20-Day Moving Average: 64% from 48% last week.
Small Cap Breadth
Breadth metrics for the S&P 600 Small Cap Index improved on the week.
- Advance/Decline Line: Testing the 50-day moving average from below.
- Percent Above Their 200-Day Moving Average: 40% from 35% last week.
- Percent Above Their 50-Day Moving Average: 47% from 39% last week.
- Percent Above Their 20-Day Moving Average: 57% from 36% last week.
NASDAQ 100 Breadth
Breadth metrics for the NASDAQ 100 were mostly weaker again this week.
- Advance/Decline Line: Still doing battle with the 50-day moving average.
- Percent Above Their 200-Day Moving Average: 33% flat from last week.
- Percent Above Their 50-Day Moving Average: 47% from 46% last week.
- Percent Above Their 20-Day Moving Average: 33% from 40% last week.
Take-Aways:
There were improvements in the breadth metrics for the NYSE, S&P 500, and S&P 600. The NASDAQ 100, however, did not get the message, and metrics have declined over the past week. While improvements are welcome, most metrics remain below levels that would be considered encouraging for equity bulls.
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