It’s encouraging to see more green showing up in the Bullish Breadth data. We still have barely more than half of stocks above the 200-day MA but there’s been enough buyer support to push the S&P 500 to a new all-time high. 8.55% of stocks are at a 6-month high, still below the 10% threshold I’ve been writing about. In today’s note I share a key breadth chart that suggests the market may be getting a little exhausted. Mega Caps continue to lead and RSP still is underperforming SPY. 30% of stocks are still more than 20% from a 52-week high and I share in the note the figure of stocks that have risen 10% or more in the last several months and what that could mean for the bout of strength we’ve seen in the Index.
Breadth Thrust Composite
A collection of multiple breadth thrust indicators based on different indices that incorporate price and volume to mark when extremely strong buying activity is taking place by the movement of individual stocks. When multiple of these thrusts occur in a short period of time, the reaction in the S&P 500 has historically been positive going forward.
Breadth Thrust Composite is back to 0.
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