I don't believe we can over-emphasize how unusual, and unhealthy, the internal breadth setup has been for the equity market.
As I stated yesterday, the Nov/Dec rally of last year was actually very healthy from a breadth perspective, but as we entered the new year it quickly, and dramatically, deteriorated... And this morning's action is no exception.
As I type, the S&P 500 is up 0.29%, however 58% of its members, and 8 of its eleven sectors, are in the red... The Nasdaq 100 is up 0.75%, while 47% of its members, and 6 of its ten sectors, are in the red as well... The S&P 500 Equal Weight Index is actually down 0.14% on the morning (which jibes with the breadth readings).
In my next video (which you'll receive in your inbox tomorrow morning) I'll, once again, offer up some historical context that illustrates why this is on our radar.
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Attention Non-Client subscribers: Nothing in this video should be construed as investment advice. The examples expressed relate to portfolio management we perform on behalf of our clients, and, again, under no circumstances are they to be considered recommendations to the viewer.
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