Trend: The Wilshire 5000 lost 87 points for the week. The daily line crossed below the 10-day SMA on Friday. The daily line hit a 52-week high on Wednesday, then dropped sharply on Thursday and Friday.
Here's a 12-month chart of the Wilshire 5000* (a proxy for the stock market as a whole), showing the 10, 30, 60, and 90-day moving averages**.
*The Wilshire 5000 is sometimes called the "total stock market index" or "total market index" because it includes more than 7,000 of the 10,000-plus securities that are publicly traded in the United States. All publicly-traded companies with headquarters in the U.S. that have readily available price data are included in the Wilshire 5000. Finalized in 1974, this index is extremely diverse, including stocks from every industry. Although it's a near-perfect measure of the entire U.S. market, the Wilshire 5000 is referred to less often than the less comprehensive S&P 500 when people talk about the entire market.
**We've decided to kick off 2007 with a new set of moving averages. Our chart will show the 10, 30, 60, and 90-day moving averages rather than the
traditional 50 and 200-day moving averages. We think that these four
moving averages will be more sensitive to changes in trends and provide
better indicators of what is unfolding in this total stock market index.
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