Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Market Participation Is Dismal

by May 10, 2023
May 10, 2023
Market Participation Is Dismal

When we talk about “participation,” we are referring to the number of stocks actually taking part in a given market move. Presently, we are looking at the rally from the October lows and the indicators we use to assess it. First, we have our Silver Cross Index (SCI), which shows the percentage of stocks in the S&P 500 that have their 20-day EMA above their 50-day EMA. This configuration is an intermediate-term BUY Signal, and we can see that the SCI currently reads 47 percent. Note that the SCI reading at the February price top was about 80 percent, so we have a double price top with a severe SCI negative divergence.

We have a similar situation with the Golden Cross Index (GCI), which shows the percent of stocks with the 50-day EMA above the 200-day EMA, a long-term BUY Signal. At 52 percent, it reads a bit higher than the SCI, but it is a slower moving indicator. Nevertheless, it too has negative divergence against the two price tops.

The remaining three panels show the percent of stocks in the index with price above their 20-, 50-, and 200-day EMAs. They are all reading in the 40 percent range, and are all displaying negative divergences. All this evidence tells us that participation is narrowing with fewer stocks supporting the price advance.

Conclusion: Last Friday’s rally fueled hopes that the rally from the October lows would be continuing, but fading participation shows severe erosion of the technical foundation, and a rally continuation seems highly unlikely.

Learn more about DecisionPoint.com:

Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2023 DecisionPoint.com

Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action. l

0
FacebookTwitterGoogle +Pinterest
previous post
The Wisdom of Jesse Livermore, Part 4
next post
Chileans Vote to Step Back from the Socialist Brink

You may also like

These High-Yield Stocks are Still Winning Despite Market...

March 29, 2025

Macro Market Outlook and Best Options Trade Ideas!

November 18, 2024

How the S&P 500 Reaches 6500 By March...

January 18, 2025

My Durable Advantage as an Investor is My...

May 23, 2025

Equities Remain in Strong “Go” Trend as Communications...

September 30, 2024

MEM TV: Here’s How to Trade Gaps Up...

February 3, 2024

The Stock Market is Bracing for Earnings IMPACT!

July 22, 2024

DP Trading Room: A Case for a Market...

October 7, 2024

Now That The July 6-Month Calendar Range is...

July 24, 2023

The AUTOMATED Way to Find Strong Stocks Making...

June 3, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved