First 10% correction in two years signals the end of an extended period of relative calm for stocks.
US breadth is slipping while global breadth is more resilient.
Recent stock market volatility is unlikely to knock the Fed off course.
Breadth deterioration was not just a story for the second half of 2021, it has persisted, with twist, into 2022. The persistence: more and more stocks on both the NYSE and NASDAQ have been making new lows while fewer and fewer industry groups in the S&P 1500 have remained in up-trends. The twist is that while breadth trends in the US are deteriorating, global breadth has been more resilient. Nearly half of the stocks in the MSCI Europe index are trading above their 50-day averages while for the S&P 1500 it is less than a quarter.
