Momentum Worries As Emerging Stocks Start Uptrending

  • Jason Goepfert

    Jason Goepfert

    Published: 2018-07-26 at 11:18:26 CDT

This is an abridged version of our Daily Report.

Momentum worries

As the S&P hit a 100-day high, a very low % of stocks are showing momentum. An almost record low % of stocks are above their 10-day avg or have an RSI > 70, which has preceded weak shorter-term returns or failed rallies.

Emerging uptrend

Emerging markets are above the 50-day average after being below for months. The index tends to trend and has a much better annualized return when above average than when below. A cross above average has been a good shorter-term signal, though several rallies ended up failing.

So close

The S&P 500 has climbed to within 1% of a new high after suffering at least a 10% decline in the past six months. Of the 36 other times it did this, it took a median of 3 trading days before it closed at a new high, with 69% of them reaching a new high within a week.

Debt contraction

Investors reduced their debt held against the value of their stocks by more than 3% in June, the 2nd-largest drop in margin debt in 5 years.

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 Momentum Worries As Emerging Stocks Start Uptrending was originally published as on on 2018-07-26.

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