The Groupmark China Index internals continue to be weak on low volume.
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.
The Groupmark China Index blog and website were created for investors to monitor the general health of Chinese companies trading in the U.S. Groupmark welcomes your comments.