Keeping a Close Eye On Momentum in the North American Equity Market
Over the last 20 days, the US equity is showing early signs of exhaustion, and momentum is beginning to weaken. In the following charts, we’ll highlight the various technical measures we calculate each day to illustrate the early turn in momentum. Our KLSU DM Americas Index represents the top 85% market-cap of the US and Canada.
First, after peaking near 80% above the moving average a month ago, now 55% of stocks are above their own 20-day moving average.
Second, the number of new 20-day lows is picking up. A month ago, only about 2% of North American stocks were making new 20-day lows. Now, the figure is 19%.