The above chart illustrates how many of the Top 200 stocks (as a percentage) that are above the 50 & 200 day moving average of their respective stock price. Currently only 32% of stocks (red line) are above their 200 day moving average. Only 15% of stocks (green line) are above their 50 day moving average. The ratios are approaching the lows set in March 2009, where both averages were around 10%. The 50 day average is obviously a lot more volatile, but the 200 day average is concerning.

In January 2010, 90% of stocks were above the 200 day average, with the index trading around 5000. With the 50 day unable to match the trend, the market quickly fell away in the last 2 weeks of January. Early April, the index re-tested the 5000 level, but with the market pulling back to 4900, the averages quickly fell away.

Sectors that are still performing are Utilities, REITs, Health Care, Gold, and Coal stocks. With the major capitalisation sectors underperforming, being Materials and Banking, the index is struggling to hold the current levels.