Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

Mid-Caps Make a Statement with a Breadth Thrust

by admin January 19, 2025
January 19, 2025
Mid-Caps Make a Statement with a Breadth Thrust

Mid-caps show leadership and were the first to trigger a breadth thrust. Stocks surged this week with mid-caps showing the highest participation rate. Chartists can quantify the participation rate and identify breadth thrusts using the percentage of stocks above their 20-day SMAs. We will analyze these indicators for six broad indexes and show the breadth thrust for the S&P MidCap 400.

Chart Link

The CandleGlance charts above show the percentage of stocks above their 20-day SMAs for the S&P 500, S&P 100, Nasdaq 100, S&P MidCap 400, S&P SmallCap 600 and S&P 1500. We can identify the leaders and the laggards by comparing values. Mid-caps are leading as S&P MidCap 400 Percent Above 20-day SMA ($MIDA20R) surged to 76 percent (blue circle), the highest of the six. This means 76 percent of its component stocks are above their 20-day SMAs. This is a big change because this number was below 10% in mid December. Small-caps are lagging as $SMLA20R finished at 64.17 percent (pink circle). Everything else is in between.

Chart Link

The chart above shows S&P MidCap 400 Percent Above 20-day SMA ($MIDA20R) in the top window with the oversold line at 10 percent (pink) and the thrust line at 70 percent (blue). This indicator formed a bullish divergence and then triggered a breadth thrust on Thursday. A move below 10 percent marks a downside extreme that signals an oversold condition (pink shading). Stocks, however, can become oversold, and remain oversold. Therefore, we need to wait for an upside catalyst. A subsequent move above 70% (blue dashed lines) shows a participation thrust, which means the vast majority of component stocks participated in this advance. Broad participation is bullish. $MIDA20R was the first of the six to cross above 70 percent.

At TrendInvestorPro, we pointed out oversold breadth in December and featured the divergence in Tuesday’s report. A divergence forms when the underlying index ETF (MDY) forges lower lows and the indicator forms higher lows (blue lines). MDY fell from mid December to mid January (lower lows), but fewer stocks within the index moved below their 20-day SMAs during this timeframe. Put another way, more stocks held above their 20-day SMAs. Divergences in March and October 2023 also preceded breadth thrusts.

This week at TrendInvestorPro we covered six Market Regime charts on Wednesday and highlighted seven leading ETFs om Friday’s report/video. Leadership is coming from the middle of the market, and specifically from three sectors. Click here to take a trial and get immediate access.

/////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
Only One Group Has Shown Consistent Relative Strength For The Past Year
next post
RUA GOLD Utilizes VRIFY AI to Prioritize Cumberland, Following up on Exceptional Historic Drill Intercept

Related Posts

Volatility Ahead: What Investors Need to Know Right...

April 1, 2025

Our Very Last Trading Room

April 29, 2025

DP Trading Room: Shake Up at Boeing (BA)

March 26, 2024

How to Chart In Multiple Timeframes Like A...

April 20, 2024

Applying Dow Theory to Today’s Market: Are We...

May 17, 2025

Sector Spotlight: Monthly RRG Shows Preference for Stocks...

September 5, 2023

MEM TV: This Stealth AI Stock is Ready...

May 11, 2024

Trading the QQQ in Three Time Frames

November 4, 2023

The Top Three Indicators Pressuring Earnings Right Now

October 5, 2023

AI Stocks and Their Impact on the Stock...

January 29, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Breakout Watch: One Stock in Each Sector to Watch Now

    • Small Caps Are Rotating In — Here’s Why It Matters

    • Want Faster, Lower Risk Trades? Use This Setup

    • The Seasonality Trend Driving XLK and XLI to New Highs

    • Copper Soars to All-time High as Trump Unveils 50 Percent Tariff on Imports

    • Apollo Silver; Right Assets, Right Management and Right Time

    Categories

    • Business (1,283)
    • Investing (2,658)
    • Politics (3,699)
    • Stocks (1,709)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved