Sunday, 19 August 2012

Quick Chart - S&P Stocks Above 200 DMA

As mentioned the relatively poor breadth of the current market advance, it's good to take a quick look at the % of S&P stocks that are above their 200 day moving average.

While other indicators have said we are close to a top, this indicates we may still have a small ways to go. Over the last 3 yrs, the market typically has hit ~90% of stocks above the 200 day moving average before it drops while we are currently at only 73.  However, we've also not gone as low on the last drop as would've been expected, only reaching 45% vs the 25% and 10% in 2010 and 2011.

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