One thing we know about all-time highs is that they are not evidence of a downtrend. With near-record pessimism towards stocks recently, it’s fun to watch the ones that are breaking out to all-time highs. I’m not really sure what everyone is so angry about, these long bases are slowly breaking out one by one, not breaking down.
Something we’ve been pointing to all along is that for the major indexes to take out resistance from the past 17 months, we need to see an expansion in participation to the upside. In other words, more stocks, sectors and indexes breaking out to all-time highs. This expansion of breadth is likely to lead and/or coincide with an upside resolution in indexes like the S&P500, Dow Jones Industrial Average, Global100 Index and many others. [Read more…]