STRONG BEARISH DIVERGENCE IN ALL INDEXES
In order to gauge the market’s strength, I calculate daily the percentage of stocks in some important indexes that are bullish. I then plot these percentages along with the SPY that I use as a benchmark. This allows me to see two things:
1. If the percentages of bullish stocks are going up or down
2. Which indexes have higher percentages, which means that are relatively stronger than the others
The graph below shows the percentages of stocks that are bullish in the S&P100, 400, 500, 600 and the NASDAQ100. It also shows the SPY for comparison.