30 days ago • Posted by Paul de La Baume
Weak momentum for #stocks. #technicalanalysis
The technical picture for the S&P500 is mixed, with momentum still weak. We also note RSI has rebounded to mid range. The next 2 days should give some answers. Interesting to note, that only roughly 1/3 of all stocks (as of 12/20 close) are trading above their 20-day moving average (m.a.) while 38% are above their 50-day m.a. Finally, the percentage of S&P500 stocks above their 200-day m.a. is just 58% as of 12/20/21 close. That’s an astoundingly low number considering that the S&P500 is so close to all high high territory. This explains how the broader market has suffered more damage when excluding the Large-Cap Technology stocks since mid-November. Investors are increasingly selective and searching for quality/stable earnings growth at attractive valuation multiples.