The Groupmark China Index moved sideways this week on low volume but the internals continue to deteriorate. The three charts below show the index performance, the advance decline line, and the number of stocks trading above and below their averages.
The index gained almost no ground this week but the advanced decline moved into recent new low territory. This increases the odds of a continued corrective phase.
This chart below measures the number of components trading above and below their moving averages and shows the number of companies trading below their 20 and 50 day averages increased this past week.
For further clarification of the above chart, it measures the stocks in the Groupmark China Index trading above or below their moving average. The thickest green line measures stocks trading above their 200 day average. The thinest green line measures stocks trading above their 20 day average and the green line in the middle measures stocks above their 50 day average. The red lines measure stocks below their averages with the thickest being a 200 day average, thinest a 20 day average, and the middle a 50 day averages.
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admin GC Index, Indicators, Uncategorized
The Groupmark China Index declines this week in light volume.
The Groupmark China Index continues to outperform the Dow Jones Industrial and S&P 500 Index but still suffered losses this week. The index closed the week at 1673.45 – 119.29 or 7%. It is still supported by its 50-day average that currently stands at 1646.
GMCI, volume and advance/decline line
Although this decline has been accompanied by lower than average volume, the deterioration in the components of the index has been severe. An indicator that shows this is the number of stocks above and below their 20, 50 and 200 day moving averages. Last Friday, 59 components were trading below their 20-day averages while today there are 82. Last Friday, 27 components were trading below their 50-day average and now there are 58. Keep an eye on the lists of stocks that cross their moving averages in the left hand menu marked Above/Below xx MA this could foreshadow a larger trend.
Here is a graphical representation of the numbers of stocks above and below their moving averages. The green lines are the number of components above their averages while the red is the number below their averages. The thickest lines are 200 day averages, next 50 day average and thinnest lines represent the 20 day averages.
Number of components above and below 20, 50 and 200 day average
This deterioration is also reflected in the advance/decline line that has fallen sharply in the last week. (Shown in yellow below the Groupmark China Index)
Let’s see if the index can hold the 50-day average and give us a sign the correction is over next week.
admin GC Index, Indicators