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Friday, October 24, 2008
Rally Lacks Breadth - A Bad Sign In Recent Years
On the NYSE up issues accounted for less than 40% of the total issues traded. This only the 3rd time since 1970 that the up issues % was below 40% while the S&P 500 rose at least 1%. I ran a study tonight that looked at other times the market had risen at all when the Up Issues % was less than 40%.
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5 comments:
Yup bad sign alright, Market tanking big time Pre-market...
I think "bad sign" is an understatement? How about black friday?!
Not only was breadth terrible, but volume was not impressive during the rally at the end of the session.
Volume during the rally was lighter than volume yesterday during the same time-frame. And this was after volume had been heavier than yesterday throughout the session, until that point.
I would also add that the Russell 2000 mini futs dramatically underperformed the other markets yesterday. It was especially apparent on the late day rally.
It would be interesting to be interesting to test if when it closes greater than 1% below the S&P, it presents a valid warning sign.
"Rally Lacks Breadth"
Hmmm, what rally are you talking about?
All I see is red, red, red....
Just Curious,
I have you on my blogroll. Are you getting many hits from it?
Jeff
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