FreeSPY4 min read
Breadth is repairing under the surface
SPY
Delayed
RSP
Delayed
The thesis
The index has gone sideways for three weeks while the median stock quietly stopped making new lows. That divergence usually resolves upward.
What I'm watching
- RSP/SPY ratio holding its 50-day
- Percentage of members above their 200-day
- New-high/new-low spread on down days
Positioning
Long, 3-6 weeks. Conviction: Medium. Breadth signals are early, not precise. Scale in.
Opinion, not investment advice. The author may or may not hold positions discussed.
Opinion. The author may or may not hold positions discussed. Not advice. Not a financial promotion approved under FSMA s.21. Quote data is delayed. Past performance is not a reliable indicator of future results.
Comments
7 commentsGood timing — was just reworking my SPY sizing this morning.
Small addition — the peer group is showing the same trend with a lag.
Reasonable thesis but I think SPY is priced for most of this already.
That's the part I keep going back and forth on.
Good point — hadn't looked at it that way.
Yes, and I'll post an update if that level goes.
This lines up with what I'm seeing in the SPY tape.