Measurements of market breadth are a staple for technical analysts. Market breadth refers to measures of participation. Common market breadth indicators would include things like advance-decline lines or the NYSE Bullish Percent.
This has got to be one of the more hated rallies I can remember, possibly because so few people have been on board for it. But some measures of market breadth are confirming the move to new all-time highs.
Josh Brown of The Reformed Broker highlighted a chart of market breadth recently, as you can see below.
Source: The Reformed Broker, Bloomberg (click on image to enlarge)
This breadth breakout appeared on July 9 and the S&P 500 powered higher from there.
The typical take on market breadth from market technicians is that negative divergences in breadth will normally appear prior to a drop in the market. That’s not what’s happening now—in fact, just the opposite is the case. Market breadth expanded this time prior to the stock market moving to an all-time high.
Bulls and bears can both be articulate. It’s easy to listen to a well-spoken commentator who presents just one side of the story and have it feel very convincing. It’s useful to look at market-generated data as a check; sometimes the data has a very different picture of the issue.
Just a quick note to let you know that I appreciated your insights about the topic. Quite helpful for what I am interested in these days.\nRolex has been an innovative line of luxury and award winning performance. There are watches that Hermes Birkin 30 are elegant and sleek while others are more dazzling and glamorous. It was officially registered in 1908. Because of the high price of original Hermes Bags Outlet Store, many people are prevented from these Buy Discount Hermes Bags Outlet masterpieces. There are some more products like pens lighters etc. The price for such Hermes Crocodile Birkin is stacked under two hundred dollars. They are made from the best possible materials and look, feel and Hermes Birkin Outlet impress exactly like original Swiss watches. If you often look through the websites, that you will find that we have lots of different categories about the replica watches and Hermes Outlet Store Price other name brands shoes, handbags and so on. This is one of the best sites that I have found, because you can get the latest designer name brand watches at such low prices.