Welcome back to a new trading week.
The major indexes all managed to close slightly higher last week.
But as today’s chart shows – I’m not convinced yet.
Chart of the Day
This is MMTW, the percentage of stocks trading above their 20-day moving averages – an indicator of the market’s short-term direction,
Even though markets closed higher Friday, this percentage actually dipped from 40.9% to 37.6%.
The same was true for MMTH, the percentage of stocks trading above their 50-day moving averages – an indicator of the market’s medium-term direction.
This percentage fell from 31.3% to 28.9% on Friday.
And when it came to MMTH, the percentage of stocks trading above their 200-day moving averages – an indicator of the market’s long-term direction…
We saw a decline from 39.8% to 38.8% on Friday.
In other words, even as the broad indexes rose – breadth deteriorated across the board.
The implications of this?
I explain below.
Insight of the Day
We may see a “narrow” recovery first.
During select periods from 2023–2025, we were in what I call a narrow bull market…
Where the top-line indexes kept moving up…
But market breadth keeps worsening.
In other words, a small percentage of stocks were pulling the indexes up.
Based on the data, we may enter a “narrow recovery” first…
Where a small percentage of stocks start to lead the recovery, before the rest of the market follows.
These are the stocks we want to target.
And tomorrow, Tuesday afternoon, at 1 p.m. Eastern…
I’m going LIVE to show you my top strategy for going after these stocks.
It’s all about following the footsteps of a group of traders who have an incredible advantage that allows them to almost always be ahead of the market.
And after my live training session tomorrow…
You’ll know exactly how to stay ahead of this market too.
So click here to save your seat for my live training session on Tuesday…
And I’ll see you tomorrow afternoon at 1 p.m. ET.
Don’t wait for the recovery to go “full steam” – get in now when the potential opportunities are the biggest.
Customer Story of the Day
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Editor, Stock Surge Daily
