From the desk of Willie Delwiche.
After several failed attempts, the S&P 500 managed to make a new closing high on Thursday. The percentage of stocks making new 21-day highs (lower pane) did not expand as the index moved into record territory, but the percentage of stocks making new 21-day lows (upper pane) did. In fact, we’ve never before seen this many stocks making new short-term lows with the index making new all-time highs. This is not the sort of beneath the surface action you tend to see when a market is gaining strength for a sustained rally. Rather, it speaks to a continuation of what we have seen of late - a choppy environment where less is more and cash on the sidelines is good for both mental and financial health.
