As the North American stock markets have made new all- time highs in the last few weeks, we once again see a reversal down in our main indicator that measures the percentage of stocks on a Point & Figure buy signal that trade on the NYSE – BPNYSE. We have seen this indicator move down quite a few times in the last 18 months or so...
The North American stock markets took a small time out in September but quickly returned to new highs in October and have continued their upward path in November. November has traditionally been the start of a very good 6-month time period...
Although many stock indexes have once again reached new highs recently, we do see a few indicators hitting lower lows with the recent stock market movement. Markets are generally stronger when many areas of the market are moving higher rather than only a few areas and that is why we follow so many breadth indicators...
We made quite a move up in most global and North American stock markets since last November. As many stock markets make new highs, there has been one index or group of stocks that has had some indigestion issues- the Nasdaq...
Only 8 business days ago, we experienced some deep concern in the markets as many stock markets sold- off and the volatility measurement for the S&P 500, known as the VIX, spiked up to 41 – just below the June high of 44.
We seem to be still recovering from the inordinate March drawdown which saw the S&P 500 move from 3,390 in February to a low of 2,220 in March. A very dramatic move in a short period of time.
It was a good 3rd quarter for the markets with only 1 down month- September. Now, October has started on the right path, as our main indicator - the Bullish Percent for the NYSE (BPNYSE) - which measures the percentage of stocks that trade on the NYSE that are on a Point & Figure buy signal reversed up from 46% to 54%.
We entered the month of September with an over-bought US stock market and it did not take long for a down movement to take hold in the US markets to reflect that state with the technology heavy Nasdaq 100 stocks leading the way.
Back in January and February this year we were making new all- time highs in the most diversified stock market – S&P 500. We then had a set- back…. which moved into a recession
Although the news is far from ideal on a number of fronts, when we look at the largest and strongest stock market around the world, the S&P 500 in the US, we see a breakout to a new high but not the all time high reached in February of this year at around 3,375.
One of the lagging sectors in this massive stock market recovery has been the major banks – both in Canada and elsewhere. One could say, you will not have a strong economy without the bank sector contributing to the growth.
Volatility certainly seems to be the name of the game lately. The stock markets went down very fast and bounced back (somewhat) very fast. The Leading Nasdaq Composite made it back to where it started the New Year – the start of the New Decade. Remember the Roaring 20’s?