Well That Hasn't Happened Before - Exhibit 4

We have never, ever, seen equity market breadth diverge from equity market performance for such an extended period...


Chart: Bloomberg

A funny thing happened in April 2013 when the S&P 500 finally took out its previous October 2007 highs... As stocks went to higher and higher highs and lower and lower volatility in an unprecedentedly smooth fashion, breadth (measured for instance by the number of S&PO names above their 150-day-moving-average) has diverged constantly.

In other words, the index's uptrend is being driven by less and less names.

Which is especially noteworthy given the general sideways trend in stocks this year having stalled at the inflation-adjusted all-time highs from 2000...

Chart: Bloomberg

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See Exhibit 1 here

See Exhibit 2 here

See Exhibit 3 here