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When tuning in news or fintwit, people are always talking about trending sectors or the overall sentiment of the market. Here is an easy way to see exactly how the market is performing as a whole.
On finviz.com the homepage shows you several metrics of the market
Advancing (Long) or Declining (Short)
New High (Stocks hitting new price highs) vs New Low (new low prices)
Simple Moving Average 50 (SMA 50) - % of the entire market above or below the SMA 50
SMA 200 - % of the entire market above or below the SMA 200
In this chart we can see that stocks are advancing more than they are declining, but they are well below their SMa 50 and SMA 200. For strong uptrends, we want to see stocks above the SMA 50 and SMA 200, more stocks advancing than declining, and more stocks that are reaching all time highs (ATH).
Bar Chart
Bar Chart
On barchart.com, you can see a breakdown of each indices and market sectors and their performance based upon moving averages.
Use indices like the S&P 500, Russell 1000, and Nasdaq 100 to see how it is performing overall
Take a look at the Large Caps (Market Capitalization of more than $10B - see market cap) to see which sector is moving faster than other sectors.
Based on the chart above, here are some takeaways from the percentages provided:
Consumer Staples are lagging behind the rest of the market and should not be high priorities for investment
Energy is the strongest market. Look for the next upward trend, bounce, or retest in the shorter MA's to find an entry
Information Technology is trending slightly behind Energy at 60% <200MA
Financials shows the strongest short term trend, but overall is weak at 39% of the market above the 200MA
Major concern for most sectors is that stocks are trending below the 50MA which means the short term trends are short while they are potentially approaching the 200MA.
We would like to see more green on the first columns (5, 20, 50) showing a strong move upward (long)
Click on the Sector to Find Stocks
See a sector you like? Click on it to see which stocks are performing and which ones could be the next big thing
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