Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

The S&P 500 Is Internally Broken

Courtesy of ZeroHedge. View original post here.

Authored by Sven Henrich via NorthmanTrader.com,

The S&P 500 is internally broken. You don’t see it in price yet, but you can see it in the internals. For weeks I’ve been outlining my concerns of narrow leadership in markets including in late January before the big correction in The Narrow Rally  and even this week in Tech Cracks before the resumption of weakness this week.

The correction and subsequent bounces have deepened these concerns. Why? Because despite rallies that, for now, have saved the trend in price they have utterly failed to repair the damage in internals and I can show you this with one key chart: The cumulative-advance-decline mix versus the $SPX.

See for yourself, the price advance early in the week rejected precisely at the underbelly of the broken trend line:

While $SPX barely saved its 2016 trend line into the close on Friday we can observe that the cumulative $NYAD trend remains technically busted. Until this trend is repaired all rallies are to be regarded with technical suspicion. If the trend can’t be repaired the signal is structurally bearish for the S&P 500.

[ZH: We also note that Hindenburg-style action is very prominent in the markets over the last month as highs/lows and advances/declines "disagree" with the market's short-term momentum swings]

This does not preclude further rallies, but represents a big fat warning sign that things are not quite right under the hood, a message further supported by the message I outlined in The Market has a Junk Problem.

It appears the market’s problems are mounting.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!