Bad breadth.
It’s a problem.
We’ve talked about it a lot. Specifically in the context of i) the equal-weighted S&P versus the regular S&P, ii) the Russell versus the S&P, and on Thursday, iii) the equal-weighted Nasdaq versus the regular index.
For those interested, here are those posts:
- This Market’s ‘Bad Breadth’ Is Getting Worse, And Worse, And …
- Chart Of The Day: Nasdaq Has Worst ‘Bad Breadth’ On Record
With the visuals and color from those pieces as the context, consider this chart:
See why that’s a problem?
The last three times the S&P has risen, new 52-week lows on the NYSE have outnumbered new 52-week highs.
Simply put: this likely won’t end well.
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Rumors that Bannon is being fired…. this moves the market up?
What about the last 5 times this happened? 10? 15?
i’m glad you asked. you can read all about it here: https://www.bloomberg.com/news/articles/2017-08-17/dip-buyers-beware-this-selloff-came-with-slew-of-worrying-signs