Daily Spotlight

Record Breadth Advance Resumes

Our proprietary Technical Composite jumped to its highest level since January 2018, as Breadth rebounded sharply, reaching its best level since April 2016. After pausing in the first week of the month, our Breadth index surged more than three-quarters of one sigma (Standard Deviation), the biggest gain since the initial weeks of the recovery from the December bottom. The Breadth index has risen over five sigma since 12/24, making this the strongest 8-week rise since the bounce off the bottom in March-April 2009. The NYSE Cumulative Net Advance Decline line hit an all-time high last week. The important Cumulative Net Up-Down volume surged to all-time highs on the Nasdaq 100 and stands close to a record on the NYSE. Our Strategic Index (a 3- to 6-month view of the market) also rose last month. Economically sensitive groups continue to lead defensive sectors, as they have since the market bottom. Particularly strong last week were small-caps, Industrials, Energy, Materials and Technology. Staples and Utilities lagged. Further, Dow Jones Transports outperformed Industrials and Industrials outperformed Utilities (trends that indicate strong growth ahead). ...  a record on the NYSE. Our Strategic Index (a 3- to 6-month view of the market) also rose last month. Economically sensitive groups continue to lead defensive sectors, as they have since the market bottom. Particularly strong last week were small-caps, Industrials, Energy, Materials and Technology. Staples and Utilities lagged. Further, Dow Jones Transports outperformed Industrials and Industrials outperformed Utilities (trends that indicate strong growth ahead).    more

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