Coolhand's Market Analysis
S&P 500 Leading the Way - Posted by Coolhand
by , 08-26-2020 at 05:47 PM (571 Views)
Originally Posted by coolhand
Of late, it's been an uneven rally and it's showing up in the breadth reading. Is it of concern? I don't think so. Not as long as you are in index funds.
And it's the S&P 500 in particular that is currently leading the DWCPF. I don't know how long that goes on. Normally, I'd expect the DWCPF to play catch up sooner or later. I have no reason not to expect that this time either. But it's not like the DWCPF isn't doing well; it's just not matching the S&P 500.
We can see the relative weakness in breadth as the signal dipped even as the S&P 500 continued to rally. I am not looking at this as a warning sign, either.
Tomorrow we get a fresh NAAIM reading. We'll soon see if they have any concern over the market divergences.
I remain bullish.
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