* Preparation: Must Know for the Week to Come; Must Know from Last Week

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Conclusion
It's the last week of the month in the swing of earnings season (full list below) and that means data, data, data... especially on the macro economic front. A huge week.

One huge trend continues... momentum is imploding and according to those numbers we are inches away from am official bear market (internals test).

We are in a different market from three-weeks ago as of... right now.

Last Week: Must Know
Last week we saw, yet again, the Russell 2000 lower as the S&P 500 rose (barely) and NASDAQ rose. I note that much of the DJIA drop was simply due to V (Visa).

Data provided, Yahoo! Finance, Charles Schwab optionsXpress

Momentum continues its shift to the bearish side.  The Russell 2000 is just a symptom of an obvious market phenomenon.  We'll take a look at some charts (below) to see the radical shift, but here are three simple stats:

* As of Friday: 34% of stocks are now trading above their 20-day MA
* As of three weeks ago: 76% of stocks were trading above their 20-day MA

* As of Friday: 47% of stocks are now trading above their 50-day MA
* As of three-weeks ago: 80% of stocks were trading above their 50-day MA

Last week the NASDAQ 100 hit a 52 wk high but with this time it has happened with fewest number of constituents (also) making new highs ever.



Chart of the Week: SPX and RUT Divergence



As small caps under-perform we must remember that there are 2000 companies in the Russell 2000 (aptly named) and just 500 companies in the S&P 500 (also aptly named).  So what?...

The under-performance in the Russell 2000 is an under-performance of the majority of companies. Yes, both are market cap weighted, but that's an even bigger tilt to the side of fewer companies leading the market up. Tick, tock...

And that's not even the most interesting part of last week.


Last Week: Phenomena We Must Know

7-24-2014
* Amazon.com (AMZN) - Earnings Implosion, Never Before Seen Risk Malaise.

7-24-2014
* Facebook (FB) - Earnings Postmortem: Did You Get All of This? Why FB is Now Larger than IBM

7-22-2014
* Puma Biotechnology (PBYI) - Stock Explodes 220% After Hours on FDA Trial Results: Potential Cure for Breast Cancer

Last Week: Stats Must Know
Momentum has maintained what is now turning into a bear market signal.

* As of Friday: 47% of stocks are now trading above their 50-day MA
* As of three-weeks ago: 80% of stocks were trading above their 50-day MA 
* As of five-weeks ago: 72% of stocks were trading above their 50-day MA


Provided by BarChart.com

But there's more... Check out the 20-day moving average numbers:
* As of Friday: 34% of stocks are now trading above their 20-day MA
* As of three weeks ago: 76% of stocks were trading above their 20-day MA

Again, we see that in the Russell 2000.  We also saw the NASDAQ 100 hit a 52 wk high but with this time it has happened with fewest number of constituents making new 52 wk highs ever.

A little perspective: A one-year chart of the percentage of companies trading above their 50 day moving average.

Provided by BarChart.com

In three weeks we have gone from 80%+ to now 46.6%.

Last Week: Must Know Headlines:

* Unbelievable collapse in small-cap stocks

* Facebook results soar on mobile-advertising growth

* Why the economy may be worse off than you think

* Yellen encourages ‘fully-fledged equity bubble,’ says Jeremy Grantham

This Week: Must Know
This week has LOTS OF ECONOMIC DATA and earnings,

Below you will find all that we need to prepare for the week to come. All data and images for this report are provided by Charles Schwab optionsXpress.

This Week: Economic Calendar



In approximately reverse chronological order we have:
1. July Jobs
2. July Unemployment
3. July Hourly Earnings
4. Initial and Continuing Weekly Claims
5. FOMC talking about interest rates and how the y will never change... unless they do.
6. Housing data.

Partial List of Noteworthy Earnings This Week


Another reminder, though not on that list above...

• TSLA
• YELP
• HLF

... also report next week.

This is trade analysis, not a recommendation.

Follow @OphirGottlieb

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