Internal Stock Market Check-Up

Today, let's quickly examine what's happening with the internal action of the stock market.

While the S&P 500 has moved up since early February, the net new highs have reduced, the percent of stocks trading above their 50-day moving average has dropped, and the McClellan and 21-Day Oscillators are showing less participation in the rally.  You can see these trends in the charts below.

Also, if you read our sector posts on Friday's, you've probably seen that even though the Industrials are "hanging in there," so many of the other economically sensitive sectors have weakened.  However, the normally defensive sectors like Utilities, Consumer Staples and Healthcare, continue to show some strength in the last few weeks.

We'll continue to keep you updated on these trends as the market evolves.

Don Hays

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