Market internals are flashing yellow. Despite major indices hovering near all-time highs, breadth is deteriorating quietly beneath the surface.
New lows have been outnumbering new highs for over a month now — that's not normal behavior in a healthy bull market. When the rally narrows to a handful of names while the rest of the market weakens, history suggests caution.
This is classic late-cycle divergence: the index looks fine because a few mega-caps are doing the heavy lifting, but the average stock is struggling. Eventually, gravity catches up.
Watch what's happening under the hood. Price tells you what's happening. Breadth tells you how sustainable it is.
New lows have been outnumbering new highs for over a month now — that's not normal behavior in a healthy bull market. When the rally narrows to a handful of names while the rest of the market weakens, history suggests caution.
This is classic late-cycle divergence: the index looks fine because a few mega-caps are doing the heavy lifting, but the average stock is struggling. Eventually, gravity catches up.
Watch what's happening under the hood. Price tells you what's happening. Breadth tells you how sustainable it is.
