Stock Market Barometers

Fundamental and technical indicators of the market’s health

Key indexes vs. their 200-day moving averages: A stock index’s 200-day moving average indicates the basic trend, up or down. It is generally bullish if the index stays above the average.

S&P; 500 (blue-chip stocks), Friday: 1,166.46

200-day moving average, Friday: 1,096.33

*

Russell 2,000 index (smaller stocks), Friday: 395.37

200-day moving average, Friday: 423.09

*

Price-to-earnings ratio of Standard & Poor’s 500: 25.36*

Based on operating earnings per share, 12 months ended Sept. 30; average since 1923: 13.5

*

Dividend yield of the Standard & Poor’s 500: 1.39%

Average dividend yield of blue-chip stocks; average since 1923: 4.5%

*

Weekly new highs vs. new lows on the NYSE: 237/166

Data for the week ended Friday. More highs indicate a bullish trend.

*

Investment newsletter sentiment:

Stocks’ near-term trend as predicted by 135 independent investment newsletters, weekly survey by Investors Intelligence. The data are often viewed as a contrarian indicator: A rising percentage of bulls can signal a topping market.

Dec 4

Bullish: 56.9%

Bearish: 31.0

Correction: 12.1

*

Friday

Bullish: 57.4%

Bearish: 31.3

Correction: 11.3

*

Put-call ratio: 0.40

The ratio of stock put options to call options traded last week on the Chicago Board Options Exchange. Ironically, a low put-call ratio--under 0.40--can be construed as bearish because it indicates a high level of optimism, leaving a lot of room for disappointment.

* Now calculated based on operating earnings, which exclude one-time charges--so P/E is lower than if actual earnings were used.

Source: A.G. Edwards & Sons.

More information can be found at https://www.agedwards.com.