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: 1,095.44
200-day moving average: 960.94
Russell 2,00 index (smaller stocks): Friday: 477.15
200-day moving average: 432.76
Price-to-earnings ratio of the Standard & Poor's 500: 27.54
Based on actual earnings per share, 12 months ended Dec. 31
Average since 1923: 13.5
Dividend yield of the Standard & Poor's 500: 1.45%
Average dividend yield of blue-chip stocks
Average since 1923: 4.5%
Weekly new highs vs. new lows on the NYSE: 617/81
Data for the week ended Friday. More highs than lows is preferable, indicating 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.
Bullish: (MARCH 20th) 48.0%; (FRIDAY) 49.6%
Bearish: (MARCH 20th 27.6; (FRIDAY) 26.4
Correction: (MARCH 29th) 24.4; (FRIDAY) 24.0
Put-call ratio: 0.41
The ratio of stock put options to call options traded last week on the Chicago Board Options Exchange. 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.
Source: A.G. Edwards & Sons. More information can be found at http://www.agedwards.com on the World Wide Web.