Friday's action (8/22) brought the BP for the S&P 400 ([^BPSPMID]) shifted back in Xs, showing an increase in participation within mid caps.
Friday’s action brought another notable outperformance day for small and mid cap indices over large caps. This continues a near-term trend over the last roughly 30 days in which the smaller indices have seen better performance but also increases in participation. The bullish percent (BP) for the S&P 600 (^BPSPSML) reversed back into Xs on August 13th, while the BP for the S&P 400 (^BPSPMID) shifted back in Xs following Friday’s (8/22) action. This places all three BPs – including the BP for the S&P 500 (^BPSPX) – with readings near the 60%, but the BP for the S&P 500 still remains in Os as of Monday’s (8/25) close.
This isn’t to call large cap leadership fall from grace but more highlight the near-term trend from mid and small caps and what potential opportunities may be available. For a recent piece on small cap’s performance and near-term action, check out the articles from the Daily Equity Report from August 13th and 15th. Bearing that in mind, the pulse today will focus on participation within the S&P 400 Mid Cap Index. The table below breaks down the level of participation for S&P 400 stocks by NDW Subsector or Industry Groups along with highlighting the average technical attribute rating of stocks maintaining buy signals.
Banks and Building are the NDW Groups within the S&P 400 with the largest number of stocks returning to buy signals, but it is intriguing to see the average technical attribute being low among those stocks maintaining buy signals. This suggests that stocks that have reside on buy signals are stocks that maintain negative RS in some fashion. Notable NDW Groups with increases in participation along with the average technical attribute among those stocks on buy signals being above the acceptable 3 threshold include Machinery and Tools, Oil Service, Transport/Non Air, and Wall Street. For those looking to delve further into recent action within mid caps or sectors look to the Security Screener under the Securities tab.
