This Has Never Happened Before To The Nasdaq

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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Comments

Hkan Wed, 11/08/2017 - 14:51 Permalink

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

Buck Johnson Wed, 11/08/2017 - 14:50 Permalink

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 Wed, 11/08/2017 - 14:56 Permalink

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!!!

DrumpFired Wed, 11/08/2017 - 14:57 Permalink

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