NASDAQ: Extreme market internal and sentiment degradation..I created this indicator to combine several market internal and sentiment indicators. The readings seen currently are below the March 2020 Covid sell-off readings and approaching what we saw in Dec 2019, which was a pretty bad month for that year as some of you might remember. This indicator can act as both a warning and as a 'get ready to buy' indicator. Generally, it will identify when internals are degrading--when readings become more extreme, the market usually sees violent moves. However shortly after that (about 3 days to a week), we usually see a strong, v-shape, counter move.
In short: We are at a ST/IT bottom or bottoming - if last week's violent down moves in the Nasdaq was not the bottom, the next day or two will likely see more violent downside moves to cause bull capitulation and a after that, a v-shape counter move.
Marketinternals
USDT.D Market Breadth InternalsUSDT.D (USDT Dominance) for crypto is like a measure of market internals, showing money flowing out of crypto risky assets into safer stablecoin assets, crypto does well when this is down and not so well when it's up
USDT.D pushing higher, looks like it wants to retest highs, after breaking out of 4.25-4.56 previous breakout zone, watching to see when this reverses and watching to see if BTC can hold 30k, 28k levels
planning to add more to crypto Long Term positions when that happens
Current State of the Stock Market | Market Breadth & EarningsIn this quick state of the market video for 7/13/2021 we discuss the structural uptrends that have been in place for the past few months.
We then talk about the dangers of weakening market breadth and why we're watching for more sectors to stabilize and resume uptrends through earnings to remain bullish on this market.
Please enjoy!
$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.