Wednesday, January 6, 2016
Something Positive Amidst a Down 200 Point Day
Many blogs have written about how horrible breadth has been for the last year or so (including this one). And, how F.A.N.G (Facebook, Amazon, Netflix, Google) single handily kept the SP500 afloat last year, which is true. However, today the Russell 2000 traded down to the August 2014 panic lows but the amount of stocks trading above their 200-day moving average is well above the August levels as you can see in the chart below. This could be viewed as a positive divergence.