Chart 1:
Percentage of Stocks above the 40 DMA continues to possibly diverge as well. At any rate, regardless it is not at a area where I would be looking to get long.
Chart 2:
Taking a look at the absolute breadth index, the indicator continues to suggest that we are nearer a peak than a point where going long is the smart trade. The indicator is the absolute difference between advances and declines then charted as the percentage increase or decrease from the previous day’s value. Tops tend to show low numbers as fewer and fewer issues participate and hope dissipates.
Chart 3:
Many factors are currently lining up in favor a tradeable correction, and at minimum breadth argues that this is at the very least not a smart place to try and get long the market.
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