Poor Market Breadth is Sign of Pullback, But No Bubble Envisioned

A series of “worrisome signals” are pointing to weakening market momentum and a possible pullback, according to a recent article in The Wall Street Journal. The signals are as follows: The S&P 500 has been hugging or lagging its 50-day moving average, a “short-term yardstick used by technical analysts to track trading momentum,” the article says, adding, “The longer the benchmark takes to break back above, the thinking goes, the sturdier this technical resistance will become, hindering the potential for gains.” The percentage of S&P 500 components trading above their 50-day moving averages has dropped to 46%, down from almost […]