Breadth Momentum Improves As Equal Weight S&P Lags

  • Jason Goepfert

    Jason Goepfert

    Published: 2018-07-09 at 09:49:45 CDT

This is an abridged version of our Daily Report.

An uptick in momentum

The McClellan Oscillator has turned positive after weeks below zero.

In a bull market, that has led to good medium-term returns, especially since 1984 when it led to gains over the next 6 months 18 out of 20 times.

Don’t forget the troops

An equal-weight S&P 500 index is lagging at a time when small-caps are leading.

This is exceptionally unusual and has led to future outperformance for the equal-weight S&P 500 index relative to the capitalization-weighted one.

Nice move in biotech

The Nasdaq Biotech fund, IBB, gapped up more than 1% then added another 1% during the session, closing at a 100-day high. Over the funds history, it has added to the gains over the next couple of days 9 out of 13 times.

Coffee relief

On Thursday, we saw how coffee had a rarely-seen level of pessimism. On Friday, futures jumped the most in a year. Since 1980, coffee has gone from a 52-week low one day to the best gain in a year the next day 3 times.

For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today.

The post titled Breadth Momentum Improves As Equal Weight S&P Lags was originally published as on on 2018-07-09.

At, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.

Follow us on Twitter for up to the minute analysis of market action.

Not ready to signup up for a free trial yet?

Signup for our Daily Lite email to receive highlights of our daily report, research and studies.

RSS Feed

Subscribe to the Blog RSS feed

Recent Blog Posts

As mentioned in...

Brought to you by:

Sundial Capital Research Logo