TRADPAUS index has been declining for months. The index is breaking new lows today and trades at early 2016 levels. TRADPAUS measures the percentage of NYSE stocks that closed above their 200-day moving average price line.

Below is the index (orange) versus the SPX (white) year to date. Diminishing amount of stocks trading below the 200-day moving average is definitely not a bullish signal, but we have seen the TRADPAUS index bounce from these levels during the volatile trading range this autumn.

The SPX index is trading down to recent closing lows. Note the SPX briefly traded below the big 2600 level earlier in December. 2600 is huge, so let´s see if this proves to be a break down lower or if SPX here is third time´s a charm.

Don´t forget that some 100 points of the DOW loss today is because of Johnson and Johnson. The move brings a déjà vu feeling from a similar move back in February as asbestos was once again a hot topic for the company. Company specifics or maybe the general market algos have decided it is all the same. It is definitely not a “charmy” day for JNJ longs as the stock is down 10% under heavy volume.

For now, it seems all we see is bears everywhere.

Source; charts by Bloomberg