The S&P 500 equal weight index is showing signs of strength and improving breadth into one of the seasonally weakest months of the year. Price action is also trying to breakout of the 14 week flat base. In addition, 67% of these 500 stocks (335 +/- ) had already pulled back below their respective 50d moving average two weeks ago, shown in the middle panel, so any change in the latter would assist a follow through. We can see that 61% (305 +/-) of these same 500 stocks afer now back above the 50 day moving average.
Growth and Value Stocks
On Tuesday, cyclical stocks on the left and growth stocks on the right performed quite well. Look for this continue to add pressure and a tailwind for the bulls. Click the charts to enlarge.
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Happy Trading,
Vinny
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