The GMI and GMI-R declined on Thursday. There were only 49 new 52 week highs in my universe of 4,000 stocks. There were 13 new lows, most of which were municipal bond ETF’s. One important indicator of a market’s internal strength is the action of the leaders. On Thursday, 8 of nine stocks in my leaders list declined, 7 of them fell more than 1%. AAPL has failed to hold at a new high after its earnings were released. (Blame it on Jobs??) On Friday, we get to look at how GOOG reacts to its great earnings. IF GOOG cannot hit a new high and stay there, it will be another ominous sign for the tech stocks. If the best stocks cannot lead the way higher, how can we expect the rest of the troops to gain?
My universe of 4,000 stocks had more highs than your results. I wonder if the universe of stocks you’re using is smaller than 4,000 stocks? Just checking.
I think the problem is the realization of the upcoming inflationary period, the question is when will it happen, maybe it has started, long term treasuries yields are rising and look at the price of oil and ag. commodiities.
My universe of stocks is certainly different from yours. The key is do you have more than 100?
I think it is a little to early to be sounding the alarms. Tech has significantly outperformed the market, and I believe the dip from the high is warranted and healthy. Additionally, to counter your point of “If the best stocks cannot lead the way higher, how can we expect the rest of the troops to gain”, I can point to two market leaders whose recent price action only signals the bull market has more room to run…GE & Morgan Stanley.