📈 Market Internals

These really tell the story of what is going on.

Market Internals

I review the below charts often to get a sense for what is really happening in the market. They give you a great indication of what might happen next.

Above you see four charts:

• S5FD tells you the % of stocks above their 5-day moving average.

• S5TW tells you the % of stocks above their 20-day moving average.

• S5FI tells you the % of stocks above their 50-day moving average.

• S5TH tells you the % of stocks above their 200-day moving average.

Understanding these is extremely important to tell you what kind of environment you’re in and whether you should be day trading or swing trading.

On each of these charts, there are glaring levels where you typically find support/resistance and you can use this information to develop a trading strategy.

For example, S5FD sees rejection around the 90% level and support around 10. So based on our current reading of 30, you can ascertain that we may have a little more room to drop before seeing a bounce. And then once you approach that 90 level again, you should think about closing trades.

I walk through each of these charts in-depth and how I am using them to read the market and influence my trading strategy here: