Thursday, March 05, 2009

Weakness in the S&P 500 Index

This excellent chart from Decision Point shows advances and declines specific to the S&P 500 stocks. Notice that we are making fresh bear market lows in the SPX A-D line (bottom pane) and that 13 of the last 15 trading sessions have had more declining stocks than advancers. Moreover, four of the past 15 sessions have seen more than 400 decliners of the 500 SPX stocks--unusually broad weakness.

The situation is very similar among the S&P 400 midcaps and the S&P 600 small caps: the A-D lines are at bear market lows and declining stocks have swamped advancers for three weeks running. I will resume regular coverage of market indicators and S&P 500 price targets starting with Friday morning's Twitter posts.