This is an interesting chart. It shows the SPX vs. a composite index of new 52 week highs across all US exchanges.
Today’s reading, with the SPX at 1351 is 183 new highs. Back in May, at the highs, the reading was 1200. In July, before we collapsed, it was above 800. This shows the lack of market breadth as we make new highs on the year and how narrow this rally is focused amongst some names like XOM and AAPL. The market would need greater breadth normally to hold these levels and make higher highs. If that doesn’t happen we may be due for a pullback. Something to keep an eye on.
