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Key Points

  • NYSE Advance/Decline Line Pulls Back
  • NYSE New Lows Tick Slightly Higher
  • NYSE New Highs Fall on the Week
  • 200-Day Data Tries to Reverse a Long Downtrend
  • 20-Day Breadth Data Takes the Hardest Hit

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NYSE Breadth

Thus far, the NYSE Advance/Decline Line is failing its test at the March peak. Breaking above this level will be a key data point for equity bulls. The A/D Line remains above the rising 50-day moving average, keeping the nascent uptrend in place. The S&P 500 has a similar dynamic in play.

The five-day moving averages of issues on the NYSE making new 52-week and six-month lows have both taken a turn to the upside this week. Bulls do not want to see a sustained move higher for these metrics.

The five-day moving averages of stocks on the NYSE making new six-month and 52-week highs turned down this week. Bulls want to see more upside traction for these metrics, which have been making lower highs for more than a year.

The percentage of NYSE issues trading above their respective 200-day moving averages moved to 26% this week from 30% last week. The downtrend from the December 2020 peak appears to be stabilizing but has yet to complete a reversal. The S&P 500 remains below the closely watched 200-day moving average.

The percentage of NYSE issues trading above their respective 50-day moving averages moved to 64% from 79% last week. The S&P 500 has is above its rising 50-day moving average.

The percentage of issues on the NYSE trading above their respective 20-day moving averages moved to 36% this week from 68% last week. The S&P 500 closed below its 20-day moving average.

S&P 500 Breadth

Breadth metrics for the S&P 500 have weakened this week.

  • Advance/Decline Line: Above the 50-day moving average.
  • Percent Above Their 200-Day Moving Average: 36% from 45% last week.
  • Percent Above Their 50-Day Moving Average: 78% from 91% last week.
  • Percent Above Their 20-Day Moving Average: 36% from 85% last week.

Small Cap Breadth

Breadth metrics for the S&P 600 Small Cap Index have weakened this week.

  • Advance/Decline Line: Above the 50-day moving average.
  • Percent Above Their 200-Day Moving Average: 37% from 47% last week.
  • Percent Above Their 50-Day Moving Average: 69% from 81% last week.
  • Percent Above Their 20-Day Moving Average: 34% from 72% last week.

NASDAQ 100 Breadth

Breadth metrics for the NASDAQ 100 have weakened this week. 

  • Advance/Decline Line: Above a rising 50-day moving average.
  • Percent Above Their 200-Day Moving Average: 27% from 42% last week.
  • Percent Above Their 50-Day Moving Average: 72% from 89% last week.
  • Percent Above Their 20-Day Moving Average: 24% from 73% last week.

Take-Aways:

Breadth metrics have weakened across the major U.S. markets over the past week after becoming incrementally stronger since June. There are not yet signs that bulls should be concerned, but at the same time, there is not much cause for becoming overly aggressive until the S&P 500 decisively clears the 200-day moving average. 

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