Not one of the six major US stock indexes I track is trading above any major moving average.
Here’s the table:
Let's break down what the table shows:
The table lists six major US stock indexes in rows: S&P 500, NASDAQ Composite, NYSE Composite, Russell 3000, Dow Jones Industrial Average, and Russell 2000.
The columns list seven moving averages: 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day.
Each cell displays “Above” in green when the index is trading above the moving average and “Below” in red when it is trading below it.
Two additional columns show Year-to-Date performance and the percentage distance from all-time highs.
The Takeaway: All six major US indexes are now trading below every key moving average.
Price now sits below the 5-day, 10-day, 20-day, 50-day, 100-day, and 150-day moving averages across all six major indexes. Short-term and intermediate levels have already broken across the entire market.
The 200-day moving average defines the primary trend and all six major indexes have now also closed below it.
During strong bull markets, these indexes spend most of their time above the 200-day moving average. Pullbacks find support there and bulls defend the trend. Price sitting below it means the market is no longer behaving like a bull market.
The drawdowns also reflect the damage.
The average major index is down –5.9% this year and –10.1% from its highs. The NASDAQ Composite is down –10.5% this year and –13.2% from its peak. The Russell 2000 trades –11.2% below its high. The average index is already in correction territory.
Tables this red only appear when selling spreads across the entire market. It means the weakness is broad, not just one pocket breaking down.
So, do the bulls step in and reclaim these levels, or do the bears keep pushing the market lower?
Grant Hawkridge | Chief Aussie Operator, All Star Charts
Most traders are guessing. Kenny isn't. TODAY at 1:00 PM ET, he's pulling back the curtain on the daily routine, the one indicator, and the exact pattern behind his "Golden Week."
