Rebound In BreadthSPX breadth indicator has rebounded sharply. Have to see the monthly downtrend broken before getting too bullish.
Breadthratio
$SPY and $NYSE showing Bullish Market Internals for 07/20/2016- S&P is trading above its 100-period SMA, which has turned green, illustrating positive price momentum
- Breadth ratio is < 2.0, which is a weak bullish signal, but is starting to gain positive momentum
- Net Advance Decline Line is still < 1000, which is a "not as strong" bullish signal, but is above its 21-period EMA and is rising quickly to break 1000
$SPY Bearish Market Internals on the S&P and NYSE
Overall, the AMEX:SPY was trading below its 100-period SMA for a majority of the day, with the 5-minute chart well below the 100-period SMA
- Breadth Ratio ( NYSE:UVOL / USI:DVOL ) was showing a ratio of greater than 2.0 which a sign to look for bearish/shorting opportunities on the day
- Net Advance/Decline Line ( USI:ADVN.NY - USI:DECL.NY ) was below its 21-period EMA showing bearish sentiment and was below 0 for the entire day, illustrating that bears were in control, although net declining issues never passed below the -1000 mark, which would indicate a very bearish sentiment.
Either way 07/19/2016 turned out to be a day where trades to the downside should have been preferred; although overall it wasn't a very strong bearish day.
- $JOY; -$STX were a few that I looked into.
SPY (S&P 500 Looking Bullish going into tomorrow)
- Snapshot of the Market Internals for July 18, 2016
- S&P 500 index was trading above it's 100-period simple moving average, which is a sign for positive price action
- Breadth Ratio (UVOL to DVOL) was less-than stellar with volume flowing into securities increasing over volume flowing into securities decreasing at a ratio of less than 2.0x for a majority of the day for the NYSE. Typically for strong bullish days, you'd like to see a ratio of 2:1.
- Net Advance/Decline line is above zero, illustrating that there are more advancing issues than declining issues on the NYSE. That being said, net advances are only at 800, which is below the threshold of 1000 securities. 1000 net advances would signal a strong bullish trend.
Overall watching for the market to continue it's bullish momentum tomorrow, but hoping for more strength from the market internals tomorrow. If the market shows signs of weakness and the S&P index starts to see price trade below it's 100 period simple moving average, then watch the market internals to see if you should search for shorting opportunities.
OVERALL SUMMARY: Look for long opportunities ONLY to stay with the majority of the market's movement.
