From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
Last week, we pointed out some mixed signals in our breadth indicators.
Despite the new highs from almost all the large-cap major averages, we had yet to see new highs in their corresponding advance-decline lines.
We also hadn’t experienced the kind of expansion in participation that we’d expect to accompany the indexes to new price highs.
Our new high indicators were still muted, even on shorter timeframes.
But that was last week. This week, mid-caps and small-caps have joined their large-cap peers at new record highs after making decisive upside resolutions from their year-to-date ranges.
And guess what? We’re finally getting that breadth confirmation we were missing.
Let’s talk about it.