Wednesday, July 1, 2015

SPXA200R S&P 500 Stocks Above 200-Day MA Trending Lower

The opinions of most Wall Street pundits, analysts, traders, strategists and market participants are worthless. After all, the same jack*sses on television now are the same ones that told you to put your life savings into stocks in 2007-2008. There are a few worth paying attention to, however, and one is Louise Yamada a seasoned technician. Yamada has remained bullish over the last couple years but appears to be wavering and concerned over the last month that stocks may be running into a rough patch ahead.

She cites the number of stocks above the 200-day MA shown in the chart above. Note that while the broad market (SPX) continues higher it comes with less and less participation over the last two years. In a robust and sustainable market, the chart above should be sloping up not down. Big-time stocks such as AAPL are supporting the elevated stock index prices but the broad market is fading. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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