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Every Bull Gets Tired And Needs To Catch Its ‘Breadth’!

‘Looking under the hood’ of the markets must be one of the processes a serious investor incorporates within his/her market analysis. Here at the ‘shop’, we check market internals (Breadth) on a daily basis. We present to you below, 3 ‘Desert Island’ charts for assessing Market Breadth.

Chart 1: Shows the S+P 500 daily chart with the NYSE A-D Volume Line (Pane 2) and the % NYSE Members > 200 MA (Pane 3). This is one of our market top watch charts. Both indicators have reached extreme values and are diverging from SPX price action, i.e. not confirming this latest push up.

Chart 2: Showcases two of our prized proprietary indicators that comprises of a tactical and strategic market timing tool. This chart is also flashing warning signs.

Chart 3: Shows the market internals for the Nasdaq Composite and you would agree that things are deteriorating on the internals front ,which is normally a precursor for a pullback and even market top.

Proceed with caution. 

Charts were created using Tradingview.com and Stockcharts.com – two of the best charting platforms out there!