One of the best ways I found to gauge the overall strength of the market is to look at the 5 major ETFs: the S&P 500 Large Cap Index (IVV), the S&P 400 Mid Cap Index (NYSEArca: IJH), the S&P 600 Small Cap Index (NYSEARCA: IJR) , the Russell Micro Cap Index (NYSEArca: IWC) and the NASDAQ 100 Index (Nasdaq:QQQ). This tells you not only the movement in the overall market but also in the various capitalized levels of the market. These 5 fund own approximately 3000 separate stocks equaling about 98% of the entire US stock market capitalization.
Notice all 5 ETFs are trading below their 20 and 50 day moving averages. If you panic when the market is off by more than 10% then there is good news here as only the Russell Micro Cap is down by more than 10% and the Nasdaq 100 is only 2.94% off its 52 week high.
S&P 500 Large Cap Index
Barchart technical indicators:
S&P 400 Mid Cap Index
Barchart technical indicators:
S&P 600 Small Cap Index
Barchart technical indicators:
Russell Micro Cap Index
