Stocks continued their October run with the S&P 500 SPDR, S&P 500 EW ETF and S&P MidCap 400 SPDR hitting new highs. Participation is clearly broadening and this is reflected in the percentage of S&P 500 stocks above selective moving averages. There were also 17 new uptrend signals via the StochClose indicator.
This page shows the current Market Regime using the Composite Breadth Model and the situation in the credit markets with yield spreads. These indicators are very different, but they go hand in hand when assessing the state of the stock market. Stocks perform best when credit markets are not stressed
After a dozen new uptrend signals in late August and early September, the tide changed as the S&P 500 experienced its first 4-5 percent pullback since May. This pullback was enough to reverse some of the new uptrend signals and there were 14 new downtrend signals over the last five days. I am referring only to the 113 equity-related ETFs