Fewer Players Carry the Team

Igor Manukhov - May 26, 2023

As the market is trying to advance, fewer stocks are participating in the rally. Proceed with caution.

The market had recently surpassed its February high. However, not all is rosy under the hood. Notice that fewer and fewer stocks are participating in this rally (blue lines).

This time around fewer stocks are trading above their 150 day moving average price (green line). Fewer stocks are bullish now as well (Bullish Percent Index drawn in pink has a lower reading than back in February).

This divergence suggests that there might be a pullback or a pause of some sort. I have marked in red previous times that this setup emerged. I do not expect it to be as bad as the last two times, but I would proceed with caution.

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Fewer Players Carry the Team

Igor Manukhov - May 26, 2023

As the market is trying to advance, fewer stocks are participating in the rally. Proceed with caution.

Igor Manukhov

Peter Kuntyj

Yelena Manukhova

Brittany Stone

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