Weekly Outlook Sep 2-6 (Breadth Indicators)
In the top chart we have 
MMTH which shows how many stocks are above their 200 D MA expressed as a percentage. When 70% or more of stocks are above their 200 D MA, it can be seen as over exuberance which can lead to a short term decline as investors take profits on riskier stocks to rotate in less risky stocks. While we are not quite there yet, the middle chart MMFI (stocks above 50D MA) and MMTW (stocks above 20 D MA) show cause of concern for short term downside.
The above market breadth indicators can signal a rotation out of risk. When combined with other indicators such as market fear/greed being neutral, AAII sentiment being 2% off its 1 year bullish high, its likely we will see a rotation out of risk such as crypto - paving a short opportunity for risky assets in crypto (political tokens, meme tokens etc)
MMTH which shows how many stocks are above their 200 D MA expressed as a percentage. When 70% or more of stocks are above their 200 D MA, it can be seen as over exuberance which can lead to a short term decline as investors take profits on riskier stocks to rotate in less risky stocks. While we are not quite there yet, the middle chart MMFI (stocks above 50D MA) and MMTW (stocks above 20 D MA) show cause of concern for short term downside.The above market breadth indicators can signal a rotation out of risk. When combined with other indicators such as market fear/greed being neutral, AAII sentiment being 2% off its 1 year bullish high, its likely we will see a rotation out of risk such as crypto - paving a short opportunity for risky assets in crypto (political tokens, meme tokens etc)
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.