From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
We’ve been super obnoxious about the deterioration in new highs we continue to see in the US.
But the major averages haven’t been phased a bit. The S&P 500 and other large-cap indexes keep charging to new heights.
Yet when we look beneath the surface, we’re hearing a different story… The vast majority of stocks have NOT been making new highs along with the averages. In fact, we’rebeginning to see an expansion in new lows.
This is a new development that’s commanding our attention right now, mainly because these are the weakest conditions we’ve seen many of our breadth measures since last year.
Most stocks are simply NOT making new highs, and haven’t done so since Q1. Plenty more are trending sideways and have already been consolidating for months.
Perhaps we’ve already seen the market correct beneath the surface. Maybe that was it…