Stocks are back at an all-time high – or at least all the major indices are.
Just today alone:
S&P 500 (SPX): New all-time highs
Nasdaq (COMP): Crushing New all-time highs
Dow Jones Industrial Average (DJI): Right at New all-time highs
Russell 2000 (RUT): Bull flag at the all-time highs
But under the surface the breadth isn’t very good with only 58% of stocks trading above their 40-day moving average. In a strong bull market, this should be over 80%. Breadth in recent days hasn’t been really good either. On Wednesday, though, during the sell-off, the bears had an unheard of 6:1 advantage.
Take today’s price action and the bulls have a 17:11 advantage. Not something to really write home about. The Dow only has 13 of 30 stocks trading in the positive today.
Nonetheless, the market persisted.
We are only two weeks in, on a solid bearish reversal, but like so many that we have seen before, it looks more determined to simply trade sideways, or just ignore it all together and keep establishing new all-time highs day-after-day.
Either way, I won’t be surprised.
Here is the Reversal Indicator:
