From the desk of Willie Delwiche.
We’ve been on the lookout for evidence of breadth improvement and the new high lists this week have given us plenty of it. The 63-day (3-month) new high lists for small-caps and mid-caps have heated up after being dormant for most of the summer and that is starting to stretch into new highs on a 126-day (6-month) and 252-day (1-year) basis as well. On the NASDAQ we have now seen the most 52-week highs since March. I’ll let pundits talk about the impact that a drop in bond yields might be having on this and just note that new highs expanding is one of the most bullish things we can see from the stock market. When they stop expanding and start to contract is when we start to see trouble.
