Checking in on the Stock Market Internals

Today, let's review the internal nature of the stock market.  One way of looking at this is by examing the percentage of stocks trading above their 50- and 200-day moving averages.
 
 
In the chart above, you can see that both the orange (50-day moving avereage) and blue (200-day moving average) lines are moving ever so closer to that 90% participation level, which usually precedes some pause to refresh.
 
Furthermore, from this short-term perspective, as the market struggles to get back to that peak of 2000 and 2007, it is closing in on psychological and overbought levels that will start to impede the progress.  In the charts below, you can see that both the NYSE Arms Index and our NASDAQ Overbought/Oversold Indicator are near overbought levels.
 
 
 
 
With all this said, our long-term outlook remains very bullish, but for the short-term, we continue to be "hanging in there" and holding off on new investments.  Remember, we're virtually fully invested, and only pruning around the edges in positions that have either reached resistance zones or have deteriorated under our minimum requirements for holding a position.
 
Don  Hays
 
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