• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Long-term Breadth Indicators Hit Moment of Truth
Stock

Long-term Breadth Indicators Hit Moment of Truth

by November 26, 2023
by November 26, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The percentage of stocks in long-term uptrends rebounded sharply in November and returned to the highs from late August and early September. This rebound is impressive, but the absolute levels are still not that inspiring. We need to see participation breakouts and higher participation levels to get the broad bull market back. 

The chart below shows the percentage of stocks above the 200-day SMA for the S&P 500, Nasdaq 100, S&P MidCap 400 and S&P SmallCap 600. This breadth indicator tells us how many stocks are in long-term uptrends, and long-term downtrends. In general, these indicators need to exceed 60% to show enough participation to signal a broad bull market.

First, note I am concerned because these indicators broke their spring-summer lows with deep declines into late October (green shading). The percentage of large-caps ($SPX), mid-caps ($MID) and small-caps ($SML) above their 200-day SMAs dipped to the 25% area. A plunge this deep shows a serious increase in downside participation.

The indicators rebounded sharply with the November advance, but those based on the broad stock indexes have yet to exceed 60% and are at their moment of truth. Note that the percentage of Nasdaq 100 stocks above the 200-day SMA is at 71% and the strongest of the four, by far. The red shading marks the highs from late August and September. While I am impressed with the November surge, I would like to see the percentage of stocks above the 200-day SMA expand above these levels (and above 60%). We can then starting talking about a broad bull market.

TrendInvestorPro uses the percentage of stocks above the 200-day SMA in its Composite Breadth Model, which remains bearish. Even though the S&P 500, Nasdaq 100 and some large-caps are performing well, long-term breadth is lagging and large pockets of weakness remain.

Recent Reports at TrendInvestorPro

The Essential Breadth Indicator ChartList (with report and video)Building a Strategy around the Zweig Breadth ThrustMomentum Rotation Strategy for NDX and SPX StocksMean-Reversion Strategy for Russell 1000 Stocks

Special Action for StockCharts Extra and Pro Members

Get the edge with inside information, information inside the indexes and sectors, that is. TrendInvestorPro put together a comprehensive chart list focusing on breadth indicators. There are over 100 customized charts covering over 50 breadth indicators organized in a logical manner. A full report and comprehensive video accompany this list. Note that you must be an Extra or Pro subscriber to have more than one ChartList at StockCharts.

Click here to sign up for TrendInvestorPro and get this invaluable ChartList!

//////////////////////////////////////////////////

You Might Also Like
  • Week Ahead: Putting Market Moves In Perspective; Watch Nifty From This Angle
  • How to Use the A-B-C Corrective Pattern to Improve Your Entry Points
  • Breadth Thrust Can Validate a New Bull Phase for Stocks
  • Bearish Divergences in 2 KEY Growth Stocks: BEWARE!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Obama-era deal to allow Hamas office in Qatar backfired on US: experts
next post
What Are The Chances Of A Market Crash? This Indicator Says ZERO!

You may also like

The Halftime Show: Sectors Bullish Percent Index

March 6, 2023

Earnings Preview: The Technical Temperature

January 29, 2024

Mega-Cap Leadership

March 31, 2023

DP Trading Room: Uncovering Stocks from DP Scan Alerts

September 30, 2024

Why Now Might Be the Best Time to Invest in...

December 23, 2024

Week Ahead: NIFTY May See Mild Rebounds; Painful Mean Reversion...

November 15, 2024

Everyone Suddenly Hates U.S. T-Bonds: What that Means and Why...

October 16, 2023

How to Spot a Hedge Fund Trap: MicroStrategy’s Dramatic Plunge

September 4, 2024

MEM TV: How to Tell When It’s Safe to Get...

September 27, 2023

The Secret to Perfecting SPY Entry Points? RSI!

September 18, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025
    • NBA star Russell Westbrook launches AI-enabled funeral planning startup

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,185 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,065)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,065)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Rates Look Set to Rise as...

    March 17, 2024

    Is This ADX Pattern a Warning...

    January 2, 2025

    GNG TV: Materials, Industrials, Financials, Oh...

    March 11, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here