3 Index-Tracking ETFs Are Right At Key Levels (Technically Speaking For 12/21)
03 Index-Tracking ETFs Are Right At Key Levels (Technically Speaking For 12/21) Market breadth is declining: The above chart from Stockcharts shows the SPY in the top panel. The middle panel shows the percentage of stocks above their respective 200-day EMAs; the bottom panel shows the percentage of stocks above their respective 50-day EMAs. Market breadth has been declining all year, taking a pronounced move lower in the last few months. I'm inclined to believe the latter is correct, mostly due to where we are in the economic cycle. But Covid’s shock to the system also brought overdue changes that will fortify the sector for years to come, including big investments in technology, the creation of new methods to connect with consumers and speeding online delivery. “The U.S. LEI rose sharply again in November, suggesting the current economic expansion will continue into the first half of 2022,” said Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board. All of these charts are 6-month charts.