Lately, I’ve been pointing out a lot of new highs…
In fact, in November alone NYSE and Nasdaq had more new highs recorded than they’ve had in the entire period since early 2018.
Unlike what happened in early 2020, I’m seeing more and more data point to expansion of breadth, greed and participation, not deterioration.
I know I sound like a broken record, but I’ll reiterate this – all of the above are characteristics of a bull market and an uptrend, not the other way round.
Plus, the few laggards I took note of are starting to play catch up right now… and I think it’s important to keep an eye on them right now.
You keep hearing warnings about Tech, Consumer Discretionary and Communications..
For one, I myself had noted the lack of usual relative strength and initial failure to run along in the ever-shining Tech sector.
Well, all of that might now be behind us.
Permabears will surely get pissed, but all of the above are now moving higher and it’s not the recent outperformers – small- and mid-caps – at the forefront…
The large-cap indices and sector behemoths have all hopped the breakout train:
Do consolidations within ongoing uptrends resolving higher look bearish to you? To me they don’t.
A more specific sector breakdown doesn’t make it any worse:
All of the above are on the tear..
Small-caps, Transports and Emerging Markets are no longer the laggards.
They’re all broken out and have been leading the way higher.
The few that have taken a break – like Tech, Comm’s and Consumer Discretionary – are all back to work now.
The market breadth reads as good and bullish as ever! Period!
The S&P 500 itself just had an all-time weekly closing high.
So did the NYSE Advance/Decline line.
Are you still bearish because a guy on the TV told you so?