Why today’s action should concern the bulls

by CC May 4, 2012 2:39 pm • Commentary

Look, we’ve been harping on a few themes this week that have us worried (such as price action in banks globally and seasonal adjustments leading to worse economic data in the U.S.), and today’s internals add a few more shorter-term concerns for the bull case this month.  Aside from continued weakness in the banks and technology leaders finally starting to turn (AAPL back below the 50-day even after a stellar number), check out this chart on the daily range of NYSE TICK readings over the last 6 months:

This shows the highs and lows of TICK readings for the past 6 months (TICK readings indicate how many NYSE stocks ticked up or down at the same time).  Ignoring all the congestion in the chart, the point we want to make is that the high reading for today (639) is the lowest for the past 6 months, indicating a lack of buy programs and large stock index futures buyers, which generally tick a group of stocks higher at the same time.  The whales of the market might not have much ammo in reserve for now.