While major indexes around the world keep pushing to record highs, many individual stocks have been quietly losing ground.
Look at the percentage of stocks in the NYSE Composite Index in short-term uptrends — those trading above their 50-day moving average.
If a stock is above its 50-day, it’s probably not in a corrective wave.
During strong, healthy bull markets, this reading tends to stay elevated. But right now, that percentage has dropped to its lowest level since April.
That means more and more stocks are slipping below their short-term trends — even as the indexes hold steady near highs.
So the question is… who’s got it right?
Do internals catch up to the indexes — which would be incredibly bullish for a year-end rally — or do the indexes finally catch down?
My bet’s on the first one.
Let me know what you think about this — I’d love to hear from you.
Stay sharp,
Alfonso De Pablos, CMT
Director of Research, All Star Charts
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