Breadth Indicator Turns Negative As S&P 500 Declines, Avoid Buying Till It Turns Positive
Portfolio Pulse from Cory Mitchell
The article discusses the use of the 'percentage of stocks above their 50-day SMA' as a tool for swing traders to assess market conditions, highlighting its recent negative turn for the S&P 500. It advises traders to avoid taking long trades until the indicator turns positive again. The S&P 500 and all US stocks indicators are mentioned, with specific symbols provided for accessing these indicators on various charting platforms. The author owns S&P 500-related ETFs and advises caution in short-term trading.
April 16, 2024 | 3:43 pm
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NEGATIVE IMPACT
The S&P 500 ETF (SPY) is directly impacted by the negative turn of the 'percentage of stocks above their 50-day SMA' indicator, suggesting caution in short-term trading.
The S&P 500 ETF (SPY) is directly impacted by the breadth indicator's negative turn, as it reflects the overall market condition and investor sentiment towards the S&P 500. A negative indicator suggests that fewer stocks are in uptrends, potentially leading to a decrease in SPY's value in the short term. The article's advice to avoid long trades until the indicator turns positive again further supports a cautious outlook for SPY.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90