Info!! What Stock Marketplace Breadth Is Telling Us

If you lot hold off closely, you'll come across something quite unusual:  the large cap indexes, such equally the Dow as well as SPX, accept been making or accept been to a greater extent than or less making all-time highs.  If nosotros hold off at the wide universe of mutual stocks, however, nosotros tin plough over the axe come across that to a greater extent than are making 3-month novel lows than novel highs.  Indeed, this has been the example for the by 5 trading sessions, despite a rising inward the large cap indexes over that five-day period.

In a similar vein, nosotros accept made 10-day highs inward SPX simply alone 50-60% of SPX stocks accept been trading over their 10-day moving averages.  

A piddling over 5% of modest cap stocks accept been making fresh 50-day highs, simply a piddling over 7% accept been making novel 50-day lows.  Influenza A virus subtype H5N1 fighting nether 32% of SP 600 modest cap shares were trading inward a higher house their 10-day moving averages when the DJIA made an all-time high.


A potent trend, similar a potent tide, should elevator all ships.  Influenza A virus subtype H5N1 position out of ships rest beached at the moment.

Further Reading:  Stock Market Breadth

Addendum - NRK chides:  "In a really potent stock market, corrections volition tend to travel apartment as well as rotational.  The flip side of the "weak breadth" even is a marketplace position inward which 30+% corrections inward onetime cost leaders cannot drag the wide marketplace position down.  The upside breakouts inward EFA as well as FEZ are worth keeping an eye, equally is the might of EEM to fit inward a higher house its March lows.  An upside resolution of the flattish correction could easily spark a global increase story."
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