Comparing SPX and its components - moving averages 100 day and 50 day.

Since April this year, the percentage of index components trading above their 50 day and 100 day averages have been falling. From a peak of 90% earlier this year, only 47% of the index stocks are currently trading above their 50 dma and 63% currently trading above their 100 dma.

This reflects: concentration in stock weight within the index and poor market breadth. Both not very good signs.

Last week, the S&P500 fell through the 50 dma and for the first time this year, bounced off its 100 dma (read about it here: https://www.claritech.app/post/sp500-below-the-50-day-gold-weak). From its 2020 lows, the index has continued to rally regardless of the news. However, with a weak market breadth and bearish triggers in motion such as evergrande, rising inflation, a north korean missile... we could see the index testing 4250 and the 200 day moving average below that at 4150.