Over the past week, most of my core market health indicators rose. Most significantly, are the market quality and trend categories. Both of them could go positive next week if the market doesn’t suffer much damage.

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One fly in the ointment is that money is still being moved disproportionately into mega cap stocks. This will provide a headwind for the broad market until the ratio between the S&P 500 Index (SPX) and SPX Equal Weighted (SPXEW) can move higher (preferably above its 20 week moving average).

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Conclusion

Market health is improving, but investors are still favoring the “safe” stocks. This indicates continued marginal gains followed by choppiness.