BofAML Warns 'Bad Breadth' May Spoil 2014's Stock Market Party

Tyler Durden's picture

The % of NYSE stocks above their 200-day moving averages has a strong bearish divergence similar to previous plunge-preceding divergences. As BofAML notes, this points to diminishing momentum for market breadth and preceded pullbacks in the range of 15%-20% in 2010 and 2011; increasing the risk for a US equity market pullback in 2014.

It would take a break below 60% for the % of NYSE stocks above 200-day MAs to provide a more dire warning for US equities.


Source: BofAML

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Colonel Klink's picture

Tick tock, it's coming.  But have no fear, Yellen is here.

Cult_of_Reason's picture

Heil Yellen!

The magic of money printing will save us!


spastic_colon's picture

"increasing the risk for a US equity market pullback in 2014."......which just like a taper will not happen primarily because everyone expects it to happen.


ZH has not reminded us of any of that one guys "rules for investing" for a while, i think one of them was...."when everyone expects the same thing, something else will happen".

Cult_of_Reason's picture

So if no one expects for BernankCoin to replace USD in 2014, we will be paying our bills with BernankCoins next year?

wisehiney's picture

Bankrupt of America will lie/decieve and manipulate. But they can't figure out how to make us believe them.

frankTHE COIN's picture

Theres one that got away. Bad Breath has done more to spoil my party plans than anything else.

HaroldWang's picture

Come on, guys, CNBC and Liesman are declaring the "crisis is over". The theme is everything is good now. Just look at the social media stocks soaring to the heavens. See, all is good!

Colonel Klink's picture

That right there is enough that everyone should be panicing.

frankTHE COIN's picture

I saw the segment on CNBC. I muted the TV halfway thru the segment because it got sickening.
What they don't understand is that these Crisis Crashes are easy to see. Elaine Garzarelli , Jim Rodgers and many others were Screaming in Sept. 1987 that a Crash was around the corner. When it happened the only ones that were not surprised were those that, ( quoting Liesman ) " Have a Crisis MindSet "

BringOnTheAsteroid's picture

Don't know how these guys, Liesman et al, get up in the morning and face work.