Jump to content



Photo

Technical Watch Weekly Breadth Data - 3/20/15


  • Please log in to reply
No replies to this topic

#1 fib_1618

fib_1618

    Member

  • Traders-Talk User
  • 10,144 posts

Posted 02 April 2015 - 07:59 AM

Posted Image

Weekly Breadth Data, Week Ending March 20, 2015

With the market's buyers taking solid control for the week, the major market indices were up an average of 2.84% from last Friday's close with the MID Caps leading the way with a gain of 3.25%, while the NASDAQ Composite's gain of 3.17% put it just 22 points away from its all time closing highs that were made on March 10, 2000.

Looking at this weeks breadth charts array and all see that all were quite buoyant with the NYSE Preferred and the NYSE REIT advance/decline lines both closing at new all time highs on Friday while the NYSE Composite, NYSE Common Only, NYSE Bond CEF and NYSE Specialty CEF advance/decline lines are all within 200 net advances from making it a complete sweep. Meanwhile, over in Europe, both the DAX and FTSE advance/declines lines closed at new all time highs on Friday as the monetary spigot continues to be on full blast and overwhelming the global financial markets with liquidity levels never seen in the history of mankind. As long as these current pecuniary polices exist, one would think that equity markets around the world would stand to be the main beneficiaries from these same monetary actions.

Both the Precious Metals and XAU advance/decline lines also enjoyed a positive week, but it wasn't nearly enough to change the tide from down to up for the metals complex in general. Although the current monetary stance by many of the Central Banks around the world will likely to have bullish implications for the metals in the future, one can't rule out that those who have been using this asset class to park investment capital in case of a breakdown in the financial system will begin to allocate these same funds into equities just on the premise of providing better return on their capital. Because of this, a defensive posture towards this group should continue to be maintained.

Over in India, the BSE advance/decline line continues to see cumulative money flows moving out of that market at a pretty good clip and from where a challenge, and eventual break, of the rising bottoms line in the BSE 500 index is as certain as you can get in this business. As with the precious metals group, a continued defensive posture is warranted here as well with the hope that a global induced technical snapback to or toward previous support happens sooner than later just to keep things from falling apart completely.

So although the BETS moved back to an accumulation signal this week with a reading of +30, it still remains below the declining tops line that has been controlling the pattern for the last 9 months. However, with Friday's strong breadth and volume plurality, indicators such as the McClellan Oscillator continue to maintain a pattern of higher lows and higher highs suggesting that the buyers are back in control of the short term trending action. Because of this, and with our previous expectation of looking for a tradable bottom after the 18th of the month, which was then complimented by a 1.80 NYSE TRIN number on Thursday, any good follow through next week by the buyers will likely have equity prices moving higher well into the middle part of April.

Have a great trading week!

US Equity Markets:

Posted Image

Posted Image

Posted Image

Posted Image

US Interest Rates:

Posted Image

US Real Estate:

Posted Image

Precious Metals:

Posted Image

Posted Image

Australia:

Posted Image

England:

Posted Image

Germany:

Posted Image

India:

Posted Image

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 .

Better to ignore me than abhor me.

“Wise men don't need advice. Fools won't take it” - Benjamin Franklin

 

"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw

 

Demagogue: A leader who makes use of popular prejudices, false claims and promises in order to gain power.

Technical Watch Subscriptions