S2N Spotlight
Everyone is commenting about the streak of consecutive companies experiencing down days versus up days. This is referred to as the advanced-decline line. Today’s spotlight will focus on the breadth of the market. Or said differently, how many of the S&P 500 constituents are participating in the rising market trend.
The advance-decline is net down 12 consecutive days, the highest since the early 1980s and close to the all-time record of 14.
The number of S&P 500 companies above their 50-day moving average keeps dropping and is now below 50%.
Looking at a longer-term 200-day moving average breadth indicator, we see it dropping.
S2N Observations
Today I will stay away from incredulous comments and focus on the data and the big picture.
Live Cattle Futures made an all-time high earlier in the week.
S2N Screener Alerts
The famous Dow Index is down 9 days in a row for only the 2nd time in 50 years. The last time this happened was 17100 days, or 46 years, ago.
The S&P 500 Value Index is down 12 days in a row, an all-time record.
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For those who are new to the letter, the shading is Z-Score adjusted so that only moves bigger than usual for the symbol are highlighted.
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