Nothing New

From the desk of Steve Strazza @sstrazza and Grant Hawkridge @granthawkridge

It’s been a while since we checked in on the US breadth scene, and for a good reason… there’s really nothing new to say.

Some US stocks are going up, but most are not.

Instead, our focus has been on expanding global breadth. We believe the burgeoning participation in international markets is constructive for US markets, specifically for cyclical areas. 

But are we beginning to see any signs of breadth expansion domestically? 

In today’s post, we'll switch gears and turn our attention stateside to address participation among US stocks.

Let’s dive in!

Here’s a look down the cap scale at all three S&P indexes, from large to small:

There's been literally no material move in the number of new highs at any cap level since early May.

In other words, new highs are muted, and breadth is NOT expanding.

BUT, at the same time, new lows are non-existent too. Even with the recent bout of volatility, new lows have been scarce across most of the major averages in the US.

It’s important to note we still haven’t seen an extreme thrust in new lows, what our fellow Technician and friend Mike Hurley likes to call a first fall day.

This reminds us that we’re still in an environment where we're best served to ignore divergences and weakness from internals.

Bottom line: This is nothing out of the ordinary for year two of a bull market.

The main takeaway about our report on US breadth today is that there’s really nothing to report that we haven’t already discussed.

Just more of the same: mixed signals and chop. It’s still a mess out there.

As always, we'll continue to monitor new data as it comes in each day to gauge the market’s overall health, and we'll be right here talking about any important changes as soon as they occur. For now, there just aren’t any.

Premium Members can find plenty more in this week's Breadth Report below...

Let us know what you think and what you're finding out there, and/0r each out with any questions.

Thanks for reading.