The Feeder Stocks Tell You WHO is Winning the Battle
We are going to make this Free-Courtesy day ... that is where we share one of our paid subscriber charts.
Today's chart is a measurement we conduct of the daily number of Positive and Negative Trending stocks on the S&P 500. (Since there are only 500 stocks on this index, 250 becomes the equilibrium, or neutral level.)
The trending numbers of these two groups act as "Feeder stocks for the trending of the market". They also clearly show when there is a shift-of-balance between the Bulls and the Bears.
On today's chart, note the lower/low made by the positive trending stocks (the blue line) at the end of July. What has happened since then? The answer is that the blue line has been trending higher with a large gap differential (over the red, Negative strength stocks) favoring the Bulls.
While it appears to be showing a little difficulty in the past few days, the differential counts still say that the Bulls have the advantage. Note where the red line was above the 250 level from May 3rd. to June 8th. That meant that there were more Negative strength stocks than Positive strength stocks and that the Bears had the advantage. (Check your charts for that time period, it was the biggest drop of the year.)
[FYI ... today's courtesy chart will not be shown again on this free site until some time in September. It is posted and updated every day on the Standard subscriber site.]