Market Breadth Report [Sep.30-Oct.04]

Below, you find our Proprietary Market Breadth Realtime Indicator from Sept.30, 2019 until Oct.04, 2019.

On Top Chart, you can see SP500/Nasdaq benchmark, our proprietary indicator that tracks SP500/Nasdaq moves with correlation = 0.99

On Bottom Chart, you can see our Proprietary Market Breadth Realtime Indicator.

  • When indicator is green, we have Intraday Bullish Market Structure so market is in “Uptrend with Buy Pullback” mode.
  • When indicator is red, we have Intraday Bearish Market Structure, so market is in “Downtrend with Sell Bounce” mode

 

Market start the week on Sept.30, 2019 with Bullish Market Structure and SP500 close green for the day.

On Oct.01, 2019, early in the morning, our Proprietary Market Breadth Realtime Indicator gave “Bear Cross” signal going into Bearish Market Structure and SP500 seeing lower lows intraday, giving follow through to downside following day.

On Oct.02, 2019, market continued lower following Bearish Market Structure, but our indicator printed an higher low, creating a “Bullish Divergence” and possible bullish signal for coming days.

On Oct.03, 2019, at middle of day, our Proprietary Market Breadth Realtime Indicator confirmed previous day Bullish Divergence and triggered “Bull Cross” signal going into “Bullish Market Structure” so we would expect “Buy Pullback” mode.

After Oct.03, 2019 Bull cross, SP500 start making higher lows and higher highs, giving confirmation following day (Oct.04, 2019) with market going higher on Bullish Market Structure.

 

 

Now we are going to compare our Market Breadth Model vs SPY from Sept.30, 2019 until Oct.04, 2019:

When our Market Breadth gave “Bear Cross” on Oct.01, 2019, SPY was trading around 296.

It hit a low of 284.9, next day (Oct.02, 2019) for more than +11$ or 3.8% move lower since bear market structure triggered.

When our Market Breadth gave “Bull Cross” on Oct.02, 2019, SPY was trading around 289.5.

It hit an high of 294.6$ next day (Oct.04, 2019) for more than +5$ or 1.76% move since bullish market structure triggered.

 

 

 

 

In total, our Proprietary Market Breadth Indicator gave +3.8% short + 1.76% long for around +5.56% SPY move for the week.

Note: Market Breadth Indicator is for informational purposes only and not trading advice.