While the S & P 500 and Nasdaq 100 have both pushed to new all-time highs in November, market breadth indicators have mostly not confirmed those recent highs.
Market breadth indicators like these are equal-weighted, meaning they simply count the number of stocks fulfilling a certain requirement.
The change in that indicator over the last six weeks tells us that about 20% of the S & P 500 members have registered a sell signal on their point & figure charts!
This chart shows the percent of stocks above their 200-day moving average, as well as the percent of stocks above their 50-day moving average as we quoted above.
The S & P 500 continues to make higher lows, but a push below 5,850 would break that pattern which has been in place since August.
Persons:
David Keller
Organizations:
Nasdaq, CMT, CNBC, NBC UNIVERSAL