Behind The Scenes

The market just continues the shrug along with no worries, however recently many stocks that have broken out have not followed through immediately.  And while the indices have been making new highs, stocks trading above their 20 day and 40 day moving average have not been making new highs.  I believe that in the intermediate term this does not matter but in the short term it might be best if we rest here;

In this chart you can see the SP500 making new highs but stocks trading above their 40 day moving average is clearly lagging.

Here is the chart of stocks trading above their 20 day moving average which provides a similar view as the 40 day chart;


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