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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Tue, 12/10/2013 - 14:57 | 4233222 Colonel Klink
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Tick tock, it's coming.  But have no fear, Yellen is here.

Tue, 12/10/2013 - 15:03 | 4233241 Cult_of_Reason
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Heil Yellen!

The magic of money printing will save us!


Tue, 12/10/2013 - 15:09 | 4233247 spastic_colon
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"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".

Tue, 12/10/2013 - 15:24 | 4233299 Cult_of_Reason
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So if no one expects for BernankCoin to replace USD in 2014, we will be paying our bills with BernankCoins next year?

Tue, 12/10/2013 - 14:58 | 4233231 wisehiney
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Bankrupt of America will lie/decieve and manipulate. But they can't figure out how to make us believe them.

Tue, 12/10/2013 - 14:59 | 4233234 frankTHE COIN
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Theres one that got away. Bad Breath has done more to spoil my party plans than anything else.

Tue, 12/10/2013 - 15:09 | 4233250 HaroldWang
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!

Tue, 12/10/2013 - 15:11 | 4233256 Colonel Klink
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That right there is enough that everyone should be panicing.

Tue, 12/10/2013 - 17:06 | 4233300 frankTHE COIN
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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 "

Tue, 12/10/2013 - 20:14 | 4234275 BringOnTheAsteroid
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Don't know how these guys, Liesman et al, get up in the morning and face work.  

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