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“Unlock the Secrets of the Markets with These 3 Charts: Market Breadth, Bonds and Sentiment!

The stock market can often be a complex and daunting place, but looking at it holistically can help put it into a clearer perspective. Here, Godzilla News takes an analytical look at the stock market in three charts to help understand the current market, including market breadth, bonds, and sentiment. The first chart shows market breadth, which offers a quick glance into how the market is doing. This chart can be used to measure the number of declining stocks in relation to the number of advancing stocks – if rising stocks exceed the number of declining ones, then the market is considered bullish. Looking at the chart, the percent of stocks advancing on both the New York Stock Exchange and the Nasdaq Exchange are above the 50% mark, suggesting that the market is being led by increasing stocks. The second chart discusses the investment grade bond market, which consists of financial instruments (fixed income securities) with risk levels considered to be “safe” investments. Analyzing this chart reveals that total debt held by investment grade bond issuers is starting to taper off from the peak it saw earlier this year, with total debt now sitting at just over $6 trillion. This suggests that corporations are now opting to use fewer debt instruments – a largely bullish sign for the market overall. Lastly, the third chart focuses on sentiment. This chart measures the sentiment of investors and finds that the market overall is currently very positive, with the percentage of bearish versus bullish investors sitting at just 5.2%. This indicates that investors remain optimistic about the stock market’s future, even in the midst of more cautious times. Overall, these three charts paint a clear picture of the stock market. Market breadth is bullish, investment grade bonds are exhibiting decreasing debt levels, and investor sentiment remains positive. Together, these three trends suggest that the stock market is on a solid foundation and is likely to remain strong in the near future.
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