Today's number is... 2022

The percentage of stocks in the S&P 500, S&P 400, and S&P 600 with their 50-day moving average above their 200-day moving average have declined to levels not seen since the 2022 market downturn.

Here’s the chart:

Let's break down what the chart shows:

• The black line in the top panel shows the price of the S&P 500 index.
• The blue line in the bottom panel represents the percentage of S&P 500 stocks with a 50-day moving average greater than their 200-day moving average.
• The gray line in the bottom panel represents the percentage of S&P 400 stocks with a 50-day moving average greater than their 200-day moving average.
• The red line in the bottom panel represents the percentage of S&P 600 stocks with a 50-day moving average greater than their 200-day moving average.

The Takeaway: When we look beneath the surface, it's evident that most stocks are in downtrends.

Only 38% of S&P 500 stocks are experiencing uptrends, while just 29%...

Today's number is... 43

There have been 43 consecutive days in which the number of 52-week new lows on the NYSE and NASDAQ has exceeded the number of 52-week new highs.

Here’s the chart:

Let's break down what the chart shows:

• The blue line in the top panel is the S&P 500 index price.
• The green and red lines in the middle panel is the NYSE + NASDAQ 52-week new highs minus 52-week new lows.
• The red shading in the bottom panel shows the consecutive days NYSE + NASDAQ 52-week new lows > 52-week new highs.

The Takeaway:When this downtrend is ready to reverse, we will notice a sharp decline in new lows, followed by a gradual increase in new highs. 

The Bulls completed the first stage of finding a bottom. Stocks must first stop declining, as we have witnessed a collapse in new lows. However, we have not yet seen any meaningful movement in the second stage, which is the gradual expansion of new highs.

Over the past 43 days, it still remains that there are more...

Today's number is... 52

The relative ratio of the S&P 500 Index versus the S&P 500 Consumer Staples sector has reached a fresh 52-week low.

Here’s the chart:

Let's break down what the chart shows:

• The black line in the top panel shows the relative ratio of S&P 500 Index versus the S&P 500 Consumer Staples.
• The red line is the 200-day moving average of the relative ratio.
• The blue line is the 50-day moving average of the relative ratio.

The Takeaway: In healthy bull markets, this ratio typically moves up and to the right on the chart. 

Right now it's moving lower! 

There’s no other way to put it—market participants are positioning themselves defensively… They are not seeking risk.

This defensive rotation has been steadily increasing since late January, and the current landscape is risk-off. 

This is perfectly normal behavior in a weak market.

Let me break down what I am seeing in the chart:

- The ratio has reached a new 52...