Value Line Index -- Contains 1700 unweighted stocks so I think it better represents the market than the narrow S&P 500 or very narrow Dow 30 -- Down for both the week and the last month
- Down by 4.66% for the week
- Down by 3.11% for the last month
- 14 day Relative Strength Index is at 39.85% and falling
- Barchart only has 1 buy on its 13 technical indicators for a 40% short term sell and a 64% overall sell signal
- Index closed Friday below its 20, 50 and 100 day moving averages at 2287.87 which is 2.4% below its 50 day moving average of 2343.52
Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various time periods -- above 50% is good --Worse than last week
- Friday only 35.61% closed above their 20 DMA, over 51.13% closed above their 50 DMA, only 41.75% closed above their 100 DMA
- Last week over 73.82% closed above their 20 DMA, over 73.31% closed above their 50 DMA and over 57.46% closed above their 100 DMA
- Last month only 46.61% closed above their 20 DMA, only 40.30% closed above their 50 DMA , only 33.55% closed above their 100 DMA
Ratio of stocks hitting new highs/new lows for various time periods -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- This is the most bearish I've seen in quite a while.
- 1 month ratio of new highs/new lows -- 138/776 = .18
- 3 month ratio of new highs/new lows -- 57/423 = .13
- 6 month ratio of new highs/new lows -- 30/320 = .09
Summary and strategy for the next week -- The market was definitely in a net downward trend last week. During the next week I will be trimming stocks that are tanking faster than the market and try not to loss more than 10% on any individual position. I will begin to accumulate cash until the market starts to recover.