The Fat Pitch

Summary :  The cumulative advance-decline (A-D) line for both the NYSE and SPX made a new all-time high (ATH) last week. That's ...

Summary :  The 5 largest stocks comprise about 16% of the S&P 500. That's normal. In fact, the importance of the top 5 stocks was fa...

Summary :  The conventional wisdom is that "healthy breadth" is  necessarily  bullish. This sounds  intuitively correct: a broader...

Summary :  Equities are 2-5% higher so far in May, trying to add to their small gains from April and put behind a rough winter. This week, s...

Summary :  When equity indices move higher, you will often hear commentators suggest the rise is suspect because leadership is narrow. "...

Summary : 2017 is off to a remarkably similar start to 2013. No two years are ever exactly the same, so there's no reason to suggest tha...

The McClellan Oscillator (NYMO) closed at 91 today. This is the first spike over 80 in NYMO since last October. NYMO is a momentum indicat...

Summary : Cumulative advance-decline (A/D) is one of the most popular ways to measure market health using breadth data. But cumulative A/D h...

Summary : Yesterday, stocks fell more than 1% on intense selling pressure. Trin spiked over 2 for the first time since early March. Declinin...

It's conventional wisdom that new highs in indices should be confirmed by an expansion in breadth. In other words, you want to see the n...

The markets hit a large number of extremes at the end of last week ( post ). More were hit Tuesday ( post ). These, together with positive s...

It's an overused phrase, but this is an important juncture in the market. Weakness in the small cap index, RUT, has reached the point ...

We discussed weakness in RUT over the weekend. Our conclusion was that relative strength or weakness in RUT in the past has been a...

In our weekend post ( here ), we specifically warned how a break back above the 50-dma for SPX has been a momentum kick off in the past. Thi...

Trin (also called the Arms Index) closed above 2.0 today. This is usually a positive for equities, at least over the short-term. Trin is a...

The utilities ETF, $XLU, is now off more than 10% from it’s high.  Among the nine SPX sectors, its performance in the past 2 months has been...

Breadth measures the number (or percentage) of stocks trending higher or lower. The conventional wisdom is that expanding breadth is bullish...

2013 is the year breadth divergences appeared to be irrelevant. There have been seven major distribution days (90% down volume) and only one...

There are a number of indicators that we track to determine whether sellers have capitulated and a durable bottom is in place. We look for a...

Today, $SPX returned to the bottom of its channel from December 2012. We noted at the close the defined risk in going long here as (1) the c...