This week's update will look at:
- 6 Major Indices
- 9 Major Sectors
- Number of Stocks Above 20/50/200-Day Moving Averages
- Various World Markets
6 Major Indices
As shown on the Weekly charts and the percentage gained/lost graph below of the Major Indices, the largest gains were made in the Dow Transports, followed by the Russell 2000, Nasdaq 100, S&P 500, and the Dow 30. In continuing last week's theme, there was more profit-taking in the Dow Utilities.
9 Major Sectors
As shown on the Weekly charts and the percentage gained/lost graph below of the Major Sectors, the largest gains were made in Industrials, followed by Cyclicals, Financials, Materials, Technology, Health Care, and Energy. Consumer Staples were basically flat, and further profits were taken in Utilities.
Number of Stocks Above 20/50/200-Day Moving Averages
Below are three 5-Year Weekly charts
showing the number of stocks (on a percentage basis) above 20/50/200-Day moving averages
You can see from the first two charts that, on a short-term and medium-term basis, stocks only have a short way to go before they hit their major resistance
levels. However, the last chart shows that, on a long-term basis, stocks have already hit a minor resistance level (established this year), and are approaching major resistance levels (established in 2009 and 2010).
With such exuberance as is being displayed in a variety of markets around the world (supported by various Central Bank quantitative easing programs), we may very well see stocks continue to push up, generally speaking, until these major resistance levels have been reached. Such an occasion may occur when (and if) the SPX:VIX ratio hits its all-time major resistance level of 150.00 (established right before the financial crisis), as shown on the next 10-Year Weekly ratio chart.