Think this is a 'weird market' right now? Here's more proof
To market veterans, talk of a stock-market “bottom” after a mere 3% pullback might sound odd, but that’s the sort of world investors live in right now, says one chart watcher.
While stocks have climbed in 2021, hitting new highs as recently as last week, fewer and fewer individual stocks have participated in the move, said technical analyst Andrew Adams in a Wednesday note for Saut Strategy. That narrowing breadth is what’s now sending a bottoming signal, though indexes haven’t suffered steep falls.
Stocks got smacked hard on Monday, accelerating a selloff that began late last week and left the S&P 500 SPX,
In One Chart: Why the S&P 500 could be poised for a 5% drop — or even more this summer
While the moves on Monday were dramatic, the scope of the selloff wasn’t what would normally prompt talk of a washout, given that steeper pullbacks of at least 5% are relatively common.
But a look beneath the hood shows that market breadth has been narrowing since February, Adams said.
Several individual stocks have fallen 10%, 20%, or …
More on: www.marketwatch.com