SmarTrend Weekly Performance Statistics
As predicted in the Morning Call last week, equity markets took a breather after hitting resistance at the 1100 level on the S&P 500. This despite a slew of positive earnings reports from a number of leading technology and materials companies. The percentage of stock in an Uptrend dipped back down to 75%, from just over 78% in the prior week. Also, the percentage of stocks in a Downtrend that are "in-the-money", has been increasing steadily week over week to just above 65%, vs. only 50% last week. The average return of each Downtrend stock is still slightly negative which may be a sign that while some profit taking may be taking stocks lower, selling pressure has not been strong enough to embolden the bears where they would push these stocks much lower. For this to occur, a break below 1075 on the S&P would be required as that level has held and been defended several times now. We will be watching these developments closely as earnings and economic data continue to trickle out and will report our findings each day in the Morning Call.
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