Chart of the Day – Tuesday, April 16, 2024

Great visual (courtesy of @granthawkridge) showing the change in environment that is underway.

So far yellow is replacing green. Risks increase when red flares up. pic.twitter.com/ouQxGtXKkT

— Willie Delwiche, CMT, CFA (@WillieDelwiche) April 16, 2024

Today’s Chart of the Day was shared by Grant Hawkridge (@granthawkridge), with special thanks to Willie Delwiche for highlighting (@WillieDelwiche).

• The S&P 500 is only down -3.8% from record highs; however, breadth has deteriorated beneath its surface.

• 26% of S&P 500 stocks are above both their 50-day and 200-day moving average.
• 39% are above their 200-DMA but below their 50-DMA.
• 32% are below both moving averages.

• The % of stocks above both moving averages (green) has plummeted from over 75% to 26% in less than three weeks. Most stocks remain above their 200-DMA but below their 50-DMA.

The takeaway: The traffic light has turned from green to yellow. Most stocks are in limbo, but selling will intensify if more stocks lose their 200-DMA.