Breadth Momentum Picks Up As Value Lags Growth And Homebuilders Turn Up


  • Jason Goepfert

    Jason Goepfert

    Published: 2018-06-07 at 11:33:15 CDT

This is an abridged version of our Daily Report.

Momentum is picking up

Momentum in breadth figures is returning, with the McClellan Summation Index climbing. When it reaches 500 for the first time in months, it has led to an excellent risk/reward skew for stocks.

The S&P 500’s annualized return when the Summation Index was above 500 has been impressive.

Value trapped

The Russell 1000 Growth Index reached a 52-week high on Wednesday, while Value is nearly 7% below. That’s the most Value was down since 2010. Previous signals led to continued outperformance in Growth, though its lead plateaued.

Builders getting bid

Homebuilders have been one of the few industries that has struggled to hold above its 50-day average. For the first time in 4 months, one of its longest streaks ever, the industry has moved into a medium-term uptrend.

VIX smash

The VIX “fear gauge” closed below 12 for the first time in months. The 11 other times it first closed below that level in at least three months, the S&P 500’s worst performance going forward was over the next 6 sessions, when it saw a gain 4 times and an average return of -0.4%.


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 Picks Up As Value Lags Growth And Homebuilders Turn Up was originally published as on SentimenTrader.com on 2018-06-07.

At SentimenTrader.com, 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