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Technical Watch Weekly Breadth Data Review


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#1 fib_1618

fib_1618

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Posted 21 February 2015 - 11:48 AM

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Weekly Breadth Data, Week Ending February 6, 2015

Not a bad week for the US markets as the major indices were up an average of 3.17%, week over week, with the small caps leading the way with a combined gain of 3.70% while the NASDAQ Composite Index brought up the rear with a return of "only" 2.35%.

A quick review of the breadth charts array for this week shows that the NYSE Composite advance/decline line moved to new all time highs on Thursday before the total market took a breather with Friday's jobs report being used as a backdrop. Looking overseas and we see that the Aussie, DAX and FTSE advance/decline lines continued to show money moving into these markets as well pushing all three price indices to either new recovery or all time highs in the process. Of particular note we see that England's FTSE index closed on Friday less than 77 points from its all time price highs, while Australia's All Ordinaries Index rocketed higher out of its descending wedge formation to settle at levels not seen since 2008. Not a bad week at all no matter where you look.

Over in the precious metals complex and we see that the price of gold continued to pull back in its technical reset to where breadth can take more of a leadership role moving forward. In this effort both the Precious Metals and XAU advance/decline lines have remained buoyant in this technical process which is indicative of a market that is priming itself for a tradable buy point as long as the previous November highs in these same money flow lines provide support. Stay tuned.

So with the BETS indicator moving to its first accumulation buy signal since July of 2013, and the volume McClellan Oscillators that are reviewed each week in our chats leading their breadth cousins to the upside, it would appear that our expectation of a tradable price low coming the 1st week of February came in "on time" and that the path of least resistance is now up until proven otherwise. All that's needed now is for the breadth MCO's to uniformly take out their own December high points, and this should then be enough of a provided thrust to push prices out of their current intermediate term high level consolidations from where a trending price sequence to the upside can get underway in earnest.

Have a great trading week!

US Equity Markets:

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US Interest Rates:

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US Real Estate:

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Precious Metals:

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Australia:

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England:

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Germany:

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Technical Watch's Breadth Data Review includes a weekend recap of hard to find breadth measurements from the New York Composite Index, the London exchange (FTSE), the Frankfurt exchange (DAX) and Sydney's All Ordinaries index. Charts are provided with a market narrative by Dave Breslaw and are annotated for additional clarity and suggested positioning. Also included with this service are occasional special posts of longer term data charts to provide a comparable historical context of how internal action of the markets (money flow) can have a direct effect on the direction of price itself. This service works hand in hand with the Chatting the Market subscription service as it provides additional global money flow insights found nowhere else on the internet. More information on subscribing to either or both services can be found by clicking here.

Edited by fib_1618, 21 February 2015 - 12:04 PM.

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