Market Breadth Correction In Progress

Following are custom market breadth charts for Dow, S&P500 and Nasdaq 100.

All 3 indices have built up significant breadth overbought conditions in their 5-Day New Highs / New Lows (4th pane) and 20-Day New Highs / New Lows (5th pane). The condition has to be corrected either by sideway high volatility price moments or a steep pullback in price level, before these indices can decide whether they will resume their bull runs.

Nasdaq 100’s Tick 1K index and its long term trend (3rd pane) are extremely bearish pointing to a sharp drop in its price level in progress. Until a strong oversold condition has happened, NDX will have a hard time going higher.

For daily update of these chart you can find them at Daily Market Breadth Monitor

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