-
Why breadth divergence is a troubling sign
The general state of the stock market seems quite healthy, with the Standard & Poor’s 500 Index making new all-time intraday and closing highs on several recent days. However, there is some internal deterioration taking place that we didn't see on similar moves to new all-time highs earlier this year. Potentially, the most worrisome of this group is breadth. More about that in a minute. Recently, the bears have had several chances to take the market down, but they couldn't. There were sell signals from a couple of our indicators (but not all of them), and that is sometimes enough to generate at least a market ... (full story)