This Has Never Happened Before To The Nasdaq

Tyler Durden's picture

Via Dana Lyons' Tumblr,

No 52-week high in the Nasdaq 100 has ever been accompanied by as few advancing stocks as today’s.

As most readers know, we are big proponents of strong breadth, or participation, in signifying healthy markets. When rallies are accompanied by a large swathe of advancing stocks, it is more likely to go further and last longer than those coming on the back of just a relatively few stocks. As such, it was encouraging to see the significant level of participation during the August-October stock market rally. Recent efforts, however, have not been so robust.

Today’s action on the Nasdaq exchange is Exhibit A. On the one hand, the Nasdaq 100 (NDX) managed to rally – again – closing at a new all-time high – again. Despite the new high, however, the breadth on the Nasdaq read as follows (according to our vendor):

  • Nasdaq Advancing Issues: 840
  • Nasdaq Declining Issues: 2105

If that seems unusually skewed to decliners considering the NDX hit a 52-week high, you are on to something. As a matter of fact, at 28.5% of all issues, today saw the fewest advancing issues ever on a day when the NDX closed at a 52-week high.

So, is this dwindling participation a serious warning sign for the rally? Or is today a random outlier, irrelevant to the bigger picture?

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Hkan's picture

Just a regular ordinary booring trade market day....nothing never happens....and there is always ........tomorrow. New bets of hopes...

hedgeless_horseman's picture


Market Strangelove: Or how everyone learned to stop worrying and buy the fucking dip.

Deplorable's picture

BTFD- I find that strangely compelling.

lasvegaspersona's picture

But....there are only like what?....10 stocks...?...right?

Buck Johnson's picture

It's getting closer and closer to that market dump that we see coming.  Remember the big boys are trying to get out slowly so as to not start a stampede and also leave the little investors and state institutions holding the bag.



TheSilentMajority's picture

Buy any and all dips.

Real interest rates are actually ((negative)) -10%, the fed will continue to provide phony inflation data, central banks are buying all stawks, and the feds’ dot-plot (gift) forecasts that they will only raise rates at a snails pace(if ever).

Goldilocks mofos!!!

Rainman's picture

Methinx the big boyz are loading up with buybacks while their stawks are still cheep, cheep, cheep      /s

DrumpFired's picture

If it has never happened and you failed to predict it then why do you keep telling on yourself? 


Only analysts who DID CALL THE MOVES IN MARKETS ARE shepwave analysts. More clear every day. LOL

Traderone's picture

Seeing as Schlepwave is in the fortune telling business can you give me this weekends lottery numbers?  because if you can't then i'm going to assume that you guys are just another useless signalling service who can't make money trading .

DrumpFired's picture

Lol I wish they did lottery tickets predictions. 

Clowns on Acid's picture

You said that Shepwave was short yesterday.... is that you Denny Gartman !

Vlad the Inhaler's picture

That's because most people don't even know what they own, Nasdaq 100 is not just tech but has all sorts of crap like Starbucks and Walgreen's in it.