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Technical Watch Weekly Breadth Data Review


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#1 fib_1618

fib_1618

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Posted 25 February 2015 - 01:52 PM

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Weekly Breadth Data, Week Ending February 13, 2015

It was a good follow through week for the buyers as the major market indices were up an average of 1.84%, week over week, with the NASDAQ Composite Index leading the way with a gain of 3.15% and the Dow Industrials bringing up the rear by 1.09%. It should also be duly noted that, with the exception of the Dow, all of the other major indices made new all time closing highs on a weekly basis on Friday with the S&P 100 (OEX), S&P 500 (SPX), S&P 400 (MID) and S&P 600 (SML) all settling at new all time highs on a daily closing basis.

Looking at the time adjusted breadth charts array for this week shows that they all remain in rising configurations with bottoms above bottoms continuing to control their intermediate term patterns. The NYSE Composite breadth advance/decline line, in particular, continues to maintain an impulsive pattern of higher lows and higher highs as it snapped back to what was previous pattern resistance before closing at new all time highs on Friday. Both the NYSE Common Only and NYSE Specialty CEF advance/decline lines also continued to show improvement this past week while the NYSE Preferred advance/decline line once again closed at new all time highs. On the flip side of things, the interest rate sensitive issues that make up the NYSE Bond CEF and NYSE REIT's continued to see money flowing out of these derivatives for the 3rd straight week while interest rates snapped back to the 2% level on the 10 year note after reaching its minimum downside objective of 1.6% on February 2nd.

Looking overseas and we see that the Aussie, FTSE and DAX advance/decline lines showed very little change in their structures from the week before with the German index continuing to make new all time highs now on almost a daily basis. Meanwhile, both the Precious Metals and XAU advance/decline lines have continued to show good buoyancy over the last couple of weeks in what may be in preparation for an upcoming tradable low in both gold and silver themselves. However, any further short term weakness in the metals from this juncture might be too much weight for this basket of stocks to endure, so it's probably best to remain somewhat defensive toward this group for the week ahead until we see some sort of signal that this 3 week "reset" has actually run its course.

So with the cumulative charts showing improvement overall, the BETS maintaining an "accumulation" signal with a +35 reading, and the short term trend of volume leading breadth to the upside, we continue to remain friendly toward equities though there are some minor tweaks that still need to be taken care of before one can say that we're running on all cylinders. Because of this, let's look for some minor weakness to sneak in sometime next week with the buyers maintaining their overall trending control of prices when all is said and done next Friday.

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, 25 February 2015 - 01:53 PM.

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