S&P 500 hit another record today, but it did it with unusually narrow market breadth -- suggesting the rally lacks momentum.
About 48% of S&P 500 members are trading above their 50-day moving average, the lowest percentage since 1999 when the benchmark reached records. Since 1990, there have been only two previous periods when this negative divergence (record high stocks accompanied by breadth below 50) happens -- December 1999 and June 1998. If you recall, the burst of the dot com bubble and the LTCM collapse came soon after these two periods, respectively.
About 48% of S&P 500 members are trading above their 50-day moving average, the lowest percentage since 1999 when the benchmark reached records. Since 1990, there have been only two previous periods when this negative divergence (record high stocks accompanied by breadth below 50) happens -- December 1999 and June 1998. If you recall, the burst of the dot com bubble and the LTCM collapse came soon after these two periods, respectively.