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You may have noticed a bit of rebranding on the website as I recently launched a new service, InsidetheSPX. This data-focused service takes S&P500 breadth data to a new level by offering the ability to look ‘under the hood’ of traditional breadth data. For instance, the number of components at a 52-week high and low is available, but so is the number of components within 1%, 3%, 5% and 10% of a 52-week high or low. This opens up a whole new set of data that may provide better or early clues regarding the market’s trend that wouldn’t be apparent with the ‘surface’ data.
InsidetheSPX is currently offered at no charge to existing MarketTells subscribers. Your existing username and password should work on both sites.
I’ve picked out a couple of data sets I’ve found particularly interesting…
The first is the number of SPX components with a 14-day RSI over 60. Notice from the minichart that the 100 level has been a pivotal area for the market. When more than 100 components have a 14-day RSI over 60, the market has strong underlying support from a number of components and usually trends higher. When that indicator is under 100, as is the case currently, there’s less broad-based support and the market tends to struggle.
Similarly, the number of SPX components that are 5%+ above their 50-day moving average should also be above 100 in a healthy, uptrending market. When we’re below this level, like now, rallies tend to be brief and ultimately unsustainable.
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