The indices continue to run in place, 4-months of sideways action. Breadth is deteriorating somewhat, if you look at the amount of stocks below their respective 50-day moving averages it might raise some eyebrows because the average is low, but most stocks are not down a lot, the averages just caught up with them due to the sideways action. Visa is an example of a stock that is trading near highs, but yet it is barely above its 50-day moving average.
Some of the biggest companies will be reporting this week; AAPL, AMZN, TSLA, GOOGL, CMG, AMGN, XOM. So far earnings reports have not affected the indices in either direction.
Currently, we have three SP500 sectors above their 50-day ma (XLK, XLE, XLF) and six below.
Energy names continue to dominate the top 20 strongest industry in the last rolling 65-days (Sectors in green where in the previous week's top 20).
The indices continue to trade sideways, the bulls nor the bears are making any headway, and the breadth charts as of now are making it seem a lot worse than what it is.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463.
The information in this blog post represents my opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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