an tSionna {9.27.2013}

Chart of the S&P 500 ETF SPY comes from FINVIZ.com.  A few comments.

*Market has given back all of its post "Taper" move now.  It is oversold short term but remains overbought per our longer term indicators.  

*Rallies have been based on narrowing leadership.  The percentage of stocks above their 200 day moving average has declined from a a mid 70's level back in the spring to around 52% today.  The percentage of stocks above their 50 day moving average is around 65%.  This is high but not at its most elevated historic level.

*Futures indicate a lower opening.  if we close in the "red" today it will mark 6 out of the last seven trading sessions that this has occurred.  Stocks are now trading around the same levels they peaked in the spring and back in July.  SPY closed at 167.17 on May 21st and closed last night at 169.69.  That's only a 1.5% increase in the past four months.  Stocks have now corrected about 2% from their most recent highs.

*Stocks can correct by time, price or both.  The channel shown in the chart above should be monitored to see if we get a change in trend.

**Long ETFs related to the S&P 500 in client and personal accounts.