March 2019: Changing Market Trends?

Since the trading week started off on such a strong note today, I just wanted to share some quick FinViz data. Because I think by looking at new highs and lows across different time frames, you can start to get a sense for how momentum is flowing.

Plus, it’s easy to do yourself in the future anytime you want. So first…

I hopped over to the FinViz stock screener and on the descriptive tab you can limit your screening results to stocks or ETFs. I went with the former.

This gives you a universe of 5,087 US-listed stocks (AMEX, NYSE and NASDAQ I believe)

So where do we go from there? Good question.

First, I wanted to see how things are doing on a longer-term basis. With a flat 200-day moving average on SPY, the results are pretty much what you expect:

  • 2,107 stocks above their 200-day moving average
  • 2,965 stocks below their 200-day moving average (that’s 58% if you were curious)

So from that common longer-term trading benchmark, the market trend is kind of a mixed-bag, with a slight edge to the bears.

No surprises here. But now let’s look at the 50-day MA:

  • 3,494 (69%) stocks above their 50-day MA
  • 1,578 (31%) stocks below their 50-day MA

Interesting, right? On this timeframe you can tell bulls have really been surging forward. And it kind of makes sense if you think about it.

We’ve rallied quite a bit year-to-date and many stocks were stretched well below their 50-day MA during the end of year correction.

Finally, let’s look at the shorter-term 20-day MA:

  • 2,388 (47%) stocks above their 20-day MA
  • 2,684 (53%) stocks below their 20-day MA

Again, maybe not what you’d expect. But it what makes sense: I imagine a lot of these stocks were previously stretched and have now fallen below their 20-day moving average, but still have some medium-term momentum. 

Now let’s look at the daily chart of the SPY ETF with the respective moving averages layered in. 

And you can see this large-cap group is doing pretty well.

On the other hand it looks like small caps (as shown by IWM) have some catching-up to do. If they can’t keep moving back up towards $160, I’d start to get more concerned.

Of course this is by no means an exhaustive market analysis by any stretch. But looking at trend-strength over different timeframes is an interesting lens through which to view recent price action. And I’ll be watching closely to see if that mid-term trend can keep moving.

Are You New Here? Then Read This…

Find Better Trade Ideas and Manage Risk

Do you want to make smarter trades? Are you hungry to improve your edge?

See the Breakout Stock Blueprint

Get 4 free email lessons to improve your trading

We respect your email privacy